Succession Challenges Threaten Germany's Mittelstand Landscape
Rudolf Kiessling faces challenges in finding a successor for his HVAC business, a common issue among German SMEs. With significant economic implications, Germany's dependency on SMEs demands immediate attention to succession planning. Internal candidates are scarce, and family-run businesses face generational shifts, requiring innovative approaches to secure the future of Mittelstand.
Germany's small and medium-sized enterprises (SMEs), collectively known as the Mittelstand, are grappling with succession planning issues as aging business owners like Rudolf Kiessling seek to retire. With over half of this sector's leaders aged above 55, the country faces a potential economic downturn if successors are not found.
The challenge is compounded by young professionals' reluctance to assume the risks and responsibilities of business ownership. As a result, many companies may face closure, further straining Germany's already fragile economic position amidst the longest downturn since World War Two.
Efforts to address this include government-backed measures and a call for innovative solutions to attract talented successors and facilitate business transfers. The vitality of the Mittelstand is crucial, as SMEs contribute significantly to Germany's economy and job market, necessitating urgent action to ensure their continuity.
(With inputs from agencies.)
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