Survey: Coronavirus crisis slows down plans for transfers of business ownership. (picture alliance/dpa)
During the coronavirus crisis, more SMEs than usual have put their plans for handing over the business to the next generation on hold for the time being. This year, more than half (51 percent) of Germany's small and medium-sized enterprises are uncertain whether and when the company should be handed over to successors, according to a survey by the state development bank KfW. In previous years, the figure had been between 41 and 45 percent. It is mainly SMEs with a somewhat longer time horizon that are suspending their planning.
Among the 3.9 million SMEs in Germany, 33 percent (previous year: 37 percent) are currently aiming for a succession solution. Another 16 percent (18 percent) are heading for closure.
According to the KfW, a basic problem with company succession is exacerbated by the coronavirus crisis: there is a lack of young entrepreneurs due to the age structure in Germany and weak entrepreneurial spirit. According to the bank's data, the number of new businesses being founded through a takeover has been stagnating at around 70,000 per year for some time. Those who take the plunge into self-employment and take over a company have above-average financing needs. They feel the financial risks of starting a business particularly strongly, KfW explained.
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