Family-owned businesses are looking with increasing concern at the economic situation in Germany. The business situation and expectations of family business owners have "drastically deteriorated," the associations "Die Familienunternehmer" (The Family Entrepreneurs) and "Die jungen Unternehmer" (The Young Entrepreneurs) announced with reference to a new economic survey. "The mood among family business owners is gloomy and their business expectations downright miserable," emphasized Marie-Christine Ostermann, president of Die Familienunternehmer.
More and more entrepreneurs were holding back on investing in their businesses, she said. Only 24 percent wanted to expand their business through investments. In addition, the replacement investments are also further declining. The companies were eating away at their capital. The biggest obstacle to investment is the cost of bureaucracy or overregulation. The survey also showed that one in five family business owners wanted to cut jobs.
Ostermann called on the German government to respond to the "warning signs." In order to maintain the economic strength of small and medium-sized businesses and to bring them forward again, she said, the Growth Opportunities Act planned by the German government would not be enough on its own - this provides for tax relief of seven billion euros per year. Sarna Röser, national chairwoman of Die jungen Unternehmer, said Germany as a business location has become too bureaucratic for many entrepreneurs and economic policy was too unpredictable. "In order to save Germany's reputation as a leading economy, industrial country, and technology pioneer, the framework conditions urgently need to be improved for all companies."
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