Concerns Grow Among German Family Firms Amid Economic Crisis

German family-owned businesses are increasingly alarmed about the economic outlook for 2025. A recent survey conducted by the associations representing family entrepreneurs reveals that only 31% of these firms anticipate growth, a decline from 34% last year and 40% in 2023. Experts warn that Germany is facing a severe crisis in growth and investment.

Since the inception of this survey in 2011, the proportion of business owners intending to reduce their workforce has reached 28%, surpassing the 19% who plan to create new jobs. This trend indicates that the current crisis is affecting the labor market comprehensively.

Moreover, the percentage of companies opting not to offer apprenticeship positions has hit a record high of 24%. The primary concerns cited by these businesses include burdensome bureaucratic reporting requirements, followed closely by increasing social security contributions. Other challenges identified include rigid labor laws, soaring energy costs, and a shortage of skilled workers.

Industry representatives emphasize the urgent need for a more business-friendly policy approach from the government, advocating for reduced bureaucracy and lower taxes to stimulate investment. The President of the Family Entrepreneurs Association has highlighted that the foremost responsibility for any incoming Chancellor should be to steer the economy back onto a growth trajectory without accumulating further debt.

To foster a favorable economic environment, it is vital to develop policies that leverage market dynamics and the innovative capabilities of businesses. The existing landscape of high taxes and escalating burdens may compel companies to reconsider their investment strategies and job creation plans within Germany.

As the nation approaches its parliamentary elections scheduled for February 23, the discourse surrounding economic policy is expected to be a focal point of the campaign, with stakeholders keenly observing how candidates propose to address these pressing concerns.