SMEs stand for international success
The German small and medium-sized companies or the "German Mittelstand" are internationally unique. They are the backbone of the German economy, mostly family-run, fast and flexible. SMEs represent more than 50% of German jobs, represent an essential link in the value chain and react when the market demands it.
SMEs continue to deliver new, compelling products and services. SMEs therefore also stands for world market leadership: almost 50% of the global “hidden champions” are German SMEs.
5 reasons why you should work with SMEs
Around 3.5 million or more than 99% of German companies are referred to as SMEs. SMEs provide 60% of the net value add in Germany and 54% of jobs.
By definition, SMEs have up to 299 (EU) or 499 (D) employees. Because of their success, the German Mittelstand (Mid-sized Business Sector) also includes larger international companies, as long as they remain owner- or family-run.
In contrast to other European markets, family businesses dominate almost 95% of German SMEs.
Because of their greater connection, they think and act in a long-term and trustworthy manner.
Hidden champions are companies that are world market leaders (No. 1 on their continent and top 3 worldwide), but hardly anyone knows about them due to their usually relatively small niche market.
There are around 2,700 “hidden champions” worldwide – around half of them are German SMEs. In addition to market leadership, they are characterized by high margins.
Fast, flexible, family-run. All of these characteristics lead to a higher level of innovation than the rest of the market, by almost 50% according to studies. SMEs will therefore continue to determine the economy tomorrow.