Aging Workforce Threatens Future of German SMEs as Succession Crisis Deepens

Over 230,000 small and medium-sized businesses in Germany may close by 2025 due to a lack of successors, with numbers projected to rise further in coming years.

A KfW study reveals that 231,000 SME owners in Germany are considering shutting down their businesses by the end of 2025, primarily due to difficulties in finding successors.
This marks a 41% increase from last year and the highest figure since KfW began monitoring succession trends in 2015.
An additional 310,000 business owners are expected to face similar challenges within the next five years, exacerbating the issue.
The aging population of business owners is a key factor, with 39% of SME entrepreneurs aged 60 or older, compared to 30% of the general population.
KfW experts warn that a lack of entrepreneurial interest in taking over existing businesses could create significant gaps in SME leadership across Germany.

Frankfurter Allgemeine Zeitung