Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

German SMEs Face Mounting Financial Strain as Costs Continue to Rise

Nearly one in five small and medium-sized enterprises report feeling financially overburdened, with service providers particularly affected by rising expenses.

Image

Overview

  • A January 2025 survey of 3,165 SMEs shows 19% feel financially overburdened, up from 14% in April 2024.
  • Only 58% of SMEs now find their costs manageable, a significant drop from 69% in the previous year.
  • While overall cost increases are expected to moderate compared to 2024, wage, material, and energy costs are still projected to rise in 2025.
  • The service sector faces the most acute pressure, as many firms struggle to pass on higher costs to customers.
  • Wages, the largest cost factor for SMEs at 35% of total expenses, are expected to remain stable for 47%, while 44% anticipate increases of up to or over 10%.