The Association of German Chambers of Industry and Commerce (DIHK) presented a new report on small and medium-sized entities (SMEs) last week. According to a recent survey by the DIHK which questioned more than 20.000 SMEs, 32 percent of all companies are currently thinking that their business position is “good”, 51 percent consider it to be “satisfactory” and only 17 percent see it as “bad”. Major enterprises with more than 1.000 employees were even more optimistic.
Thus, the spirits among SMEs are as high as they have not been in six years, said Axel Nitschke, chief economist with the DIHK. According to him, this development is on the one hand due to domestic demand steadily gaining momentum, but on the other hand mainly a consequence of economic stimuli from abroad.
Yet it is true that with regard to employment there will be a slight cutback for the first time in six years according to the report. However, in view of the strict Dismissal Protection Law, companies with more than ten employees do not hire any new staff as long as they cannot expect a sustained growth in new orders. The report is available for PDF download.