Germany

Abstract

The German “Mittelstand” is known to be the “engine” of the German economy. SMEs–here, for the purpose of the economic context, defined as enterprises with less than 500 employees and annual sales of less than EUR 50 million–represent more than 99 % of all German firms and account for about 60 % of all employees being subject to social insurance contribution. SMEs generate roughly 40 % of all sales. These numbers show the economic significance of SMEs. Consequently, they play an important role in securing competitiveness. Naturally, it is in the interest of politics to support the variety and survival of SMEs.