When we think of the german economy we immediately think of the big companies with worldfamous names. However, the enormous economic power of small and midsized companies is often underestimated but BVMW gives them a voice. Without Mittelstand our economy would not run smoothly at all. Very often there are small and midsized companies which are among world market leaders in their segment although one often doesn’t even know their names. In the following issues we will report about these companies, reflecting their importance for our country.
DM: The power and influence of German SMEs are unique in the world. How did the BVMW come into being and what are the goals it pursues?
Andreas Jahn: The BVMW’s success story began in 1975 in Bonn, the capital of Germany at the time. At that time, seven self-employed people got together to form a kind of selfhelp organisation in order to actively do something about the disadvantage that small and medium-sized enterprises faced compared to corporations. Initially, the association was mainly active in NRW. Over the years, and particularly dynamically in East Germany after reunification, a dense network of offices developed at home and abroad. Today, we’re flying the flag for small and medium-sized businesses nationwide with more than 300 offices, plus our own liaison offices in the most important economic regions worldwide. Within the framework of our SME alliance, we represent the interests of 900,000 entrepreneurs.
Since its foundation, our association has been fighting for better economic policy conditions. In concrete terms, this means: relief for businesses and citizens instead of burdens, investments in the future instead of subsidies, private instead of state, entrepreneurial freedom instead of state control. In the current escalating energy crisis, the survival of thousands of small and medium-sized enterprises and entire sectors is at stake.
Our track record is impressive. I will confine myself to three recent examples. It starts with aid in the form of the Corona bridging aid III, continues with the reintroduction of declining balance depreciation and ends with compulsory levies, or more precisely: the extensive abolition of the solidarity surcharge. Most recently, we successfully campaigned – initially as the only federation – for an extension of the lifetimes of nuclear power plants. The fact that we are on the right track is particularly evident in the current crisis. Unlike other associations, BVMW continues to grow.
DM: The current situation poses major problems for the German economy. How can the BVMV help to not only make these problems visible, but also provide support?
Andreas Jahn: As the largest, voluntarily organised association of small and medium-sized businesses, the BVMW sees itself not only as a mere representation of interests vis-à-vis political decision-makers, but also offers its members service-oriented assistance, for example in the form of checklists, guides or the provision of useful information. For this purpose, our numereous commissions and expert circles are of utmost importance, in which entrepreneurs can exchange and network on specific topics. While the commissions define the political positioning of the association on the basis of the expertise of our membership and the practical experience in their own companies and take it to the politicians through direct talks with those responsible, the main focus of our expert groups is the idea of support from members for members. In addition, our expert departments are always ready to respond to incoming enquiries and to help our members with open questions.
DM: Many companies depend now more than ever on reliable suppliers who are currently unable to fulfil their obligations at all. How do these companies deal with this and what alternatives could be offered?
Andreas Jahn: Developments in the course of globalisation have shaped a close-meshed interlocking of value and supply chains worldwide in recent decades. In order to guarantee frictionless procurement and distribution processes, it is indispensable that all participants cooperate. During the pandemic, however, this mechanism was increasingly disrupted. As a result, deliveries were delayed or even failed to materialise. While large, internationally active companies found alternatives relatively easily due to their financial strength and reach, medium-sized companies often find it difficult to deal with this situation. Many small and medium-sized enterprises often have only one supplier for certain intermediate products or raw materials, which entails a certain dependence. If this supplier fails, this inevitably has consequences for the company’s own production, trade, or provision of services and thus also for the economic success of the company and ultimately also its customers. In order to get out of this difficult situation, many SMEs embark on the arduous search for alternative suppliers. In view of the international upheavals we are currently experiencing, diversification is particularly important in order to avoid becoming dependent on new suppliers. But politics can also do something to remedy the situation and make more goods available nationally – for example through recycling and the associated improvements to the circular economy.
DM: How can the BVMW help to support companies that are no longer able to catch up in the current market economy?
Andreas Jahn: First of all, it is important to listen to the companies and evaluate the problems that our members have to deal with. On this basis, we then work hard to make the challenges of German small and medium-sized enterprises heard and to draw attention to their interests. To this end, we are in daily dialogue with decision-makers from politics, science and business. Of course, the truth is that not every company that is founded is successful and survives in the long term. During the pandemic, however, we experienced that a loss of connection to the market economy is not always self-inflicted, but can also be influenced by external factors. In these cases, it is particularly important to provide the necessary support to the actually successful business ideas.
DM: Which future markets offer particularly great opportunities for German SMEs at the moment?
Andreas Jahn: Due to the geopolitical distortions, many markets are currently in upheaval. For German SMEs, the MENA region (Middle East and Northern Africa) in particular is proving to be very promising. Our association recently opened an office in Qatar. The government there wants to invest ten billion euros in German SMEs. The future markets of Africa are also of great interest to SME entrepreneurs. Our association has already responded to the increased demand by setting up a task force in Senegal as well as in Tunisia and Rwanda.
Interview Tanja Schmidt