1. SMEs and SME policy in Germany
Dr. Armgard Maria Wippler
Head of Section „General issues on SME Policy
Federal Ministry of Economic Affairs and Energy
Fußzeile

2. German Mittelstand – an international brand2

3. SME = Mittelstand? Quantitative criteria < 500 employees
< 50 Mio. € turnover
< 250 employees
< 50 Mio. € turnover or
< 43 Mio. € total assets
“Mindset”
combination of ownership and liability
responsibility
for the success of the company
for staff
for the region
long-term strategy 3

4. SMEs are the backbone of the German economy
99,6 %
Nearly all enterprises are SMEs
3.7 million SMEs in Germany, a few thousand large ones
99,6 % of all enterprises
59,4 %
SME are a major driver of employment
More than 15 million employees
Almost 60 % of all employees
84 % of all trainees
56,5 %
SME contribute strongly to economic activity
account for 56,5 % in total net added value 4

5. What makes the German Mittelstand so successful?
Sector
Size
Internationalization
Innovation 5

6. Success of German SMEs Where does the state come in?
Non-interventionist / competition policy / regulatory framework
Internal success factors
Availability of resources
highly qualified workforce
dual vocational training system
financial means to invest and grow
availability of debt and equity capital via commercial sector
public funding
high degree of innovation
R&D infrastructure
Innovation support schemes
export orientation / internationalization
foreign trade and investment promotion
Interplay between economic policy, self-governing bodies within business and business associations 6

7. Dual vocational training system breeds skilled professionals with needs-oriented qualifications
Within the dual vocational training system
practical and theoretical training are combined
in-company curriculum and school-based curriculum are coordinated
training content and examinations follow nationwide standards and are continually updated
chambers ensure a high level of quality 7

8. Success of German SMEs Where does the state come in?
Non-interventionist / competition policy / regulatory framework
Internal success factors
Availability of resources
highly qualified workforce
dual vocational training system
financial means to invest and grow
availability of debt and equity capital via commercial sector
public funding
high degree of innovation
R&D infrastructure
Innovation support schemes
export orientation / internationalization
foreign trade and investment promotion
Interplay between economic policy, self-governing bodies within business and business associations 8

9. Mittelstand spirit: act and grow on its own initiative
% of companies that received assistance within the last 3 years
Reasons for not using assistance
Mittelstand relies on established structures 9

10. Success of German SMEs Where does the state come in?
Non-interventionist / competition policy / regulatory framework
Internal success factors
Availability of resources
highly qualified workforce
dual vocational training system
financial means to invest and grow
availability of debt and equity capital via commercial sector
public funding
high degree of innovation
R&D infrastructure
Innovation support schemes
export orientation / internationalization
foreign trade and investment promotion
Interplay between economic policy, self-governing bodies within business and business associations 10

11. German Foreign Trade and Export Promotion
information on foreign trade and investments (GTAI)
bilateral chambers of commerce
foreign trade-fair program
export initiatives
multilateral policies for open markets and fair trade
export credit guarantees
investment guarantees
market development program 11

12. Success of German SMEs Where does the state come in?
Non-interventionist / competition policy / regulatory framework
Internal success factors
Availability of resources
highly qualified workforce
dual vocational training system
financial means to invest and grow
availability of debt and equity capital via commercial sector
public funding
high degree of innovation
R&D infrastructure
Innovation support schemes
export orientation / internationalization
foreign trade and investment promotion
Interplay between economic policy, self-governing bodies within business and business associations 12

13. SME policy: actors at various levels
Government
Private sector
political framework
conditions 13

14. Thank you very much for your attention!
Khop Khun Maak Kha!
For further questions: 14