German middle class
New bosses wanted: 40 percent of companies ready for handover
The search for a company successor is a challenge for many medium-sized business owners. A study shows which sectors are particularly affected – and why it is often difficult.
Many entrepreneurs in Germany are looking for a successor. According to an analysis by the credit agency Creditreform, almost 40 percent of medium-sized companies in this country are potentially ready for handover. This means: At least one owner is older than 60 years, meaning a handover will be necessary in the coming years.
Finding a successor is often difficult, says Patrik-Ludwig Hantzsch, head of Creditreform economic research. Medium-sized companies are strongly influenced by their owners; the close relationship makes the handover a complex project.
“Companies often start planning too late. Many cannot find a suitable successor,” says the expert. The result: Entrepreneurs often continue to work and only retire when they are old.
Service industry particularly affected
In the study, Creditreform only refers to companies that are older than ten years, have 5 to 500 employees and have a legal form such as a GmbH that is typical of medium-sized businesses. Companies in which natural persons as shareholders hold a share of at least 50 percent were taken into account. According to Hantzsch, 145,000 of the 373,400 companies are ready for the handover.
The urgency is particularly great in the service industry. Most companies are affected here, around 53,000. Many companies in trade (37,000) and manufacturing (27,500) will also see a change in management in the next few years.
Hantzsch sees other reasons for the succession gap – such as a lack of skilled workers, demographic developments and a changed work mentality. “For many people, especially young people, the responsibility for a company and its employees seems too high in these times.” More and more people are hesitant to take on increasing entrepreneurial risks.
In the worst case, companies disappear from the market
Hantzsch warns of consequences. “In the worst case, these companies will simply shut down and disappear from the market.” According to a survey by the Chambers of Industry and Commerce in North Rhine-Westphalia, one in ten companies does not expect to find a successor and is preparing to shut down.
In some federal states there are initiatives to search for a successor. The Baden-Württemberg Ministry of Economic Affairs recently activated a portal to provide information about existing support offers.
At some German universities and colleges there are also courses on the subject of business creation and succession, for example in Berlin, Deggendorf, Münster, Munich and Sankt Augustin.
dpa
Source: Stern
