Goduni International Advisory Board
Goduni International Advisory Board

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Call +49 30 3001 457 26

Hauffstr. 6

D-72074 Tübingen

Call +49 7071 55 06 44

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some interesting facts & news about the "Mittelstand"

"Mittelstand Global" has become a brand not only in Germany but throughout the European Union (EU) and beyond. In this short news we are going to provide you some data explaining this phenomenon.

While some EU States still facing stagnation or predicting growth rates about 0,1-0,5% the EU SME* increased growth in value added in a row by 3,8% in 2014 and 5,7% in 2015, according to the latest official EU report **.

About 23 Mio. SMEs are registered in the EU (a single market with more than 500 Mio. citizens per today and a potential of far more than 740 Mio. citizens, if the european project is  going to be extended). These SMEs alone -without cap sized and large corporations- are generating 3,9 trillion € in value added and employing about 90 Mio. people out of appr. 200 Mio. employees in total (incl. temporary & permanent contracts & related). About 45 % of all employed citizens in the EU have been given work by the SMEs alone. These facts are important to know as they show the importance of cap sized corporations and SMEs not only in perspectives of process and technology innovation or advanced manufacturing capacities, capabilities and solutions, but also as very important employer and a hallmark of the european society.
 

Turning to another important labor and society fact: While the EU annual average unemployment rate in 2015** was about 9,4 % (10,9% in the euro area), the annual average unemployment rate for the Youth in the EU was (and still is) about 40 %. This is really bad news for our future in any aspect, incl. the security and saftey throughout Europe, not only in the single individual states, we cannot ignore or neglect. We all together have to find an apropriate answer to that issue. 

 

On the other side we find numerous transnational and/or multinational corporations about to consolidate further and expand globally in the years ahead shifting jobs outside the EU. Some of these measures are inevitably and of high importance. Nonetheless these are evidently triggering the downward employment spiral - keeping momentum in some states. And for sure, the answer could not be to regulate more or to "make globalization difficult", on contrary, such measures would accelerate the downward spiral effect and worse the situation.

 

Looking at all these facts it becomes clear, that and why the cap sized corporations and SMEs* are the backbone of the european future and also that and why the European Commission declares the increase in employment at 5 % in average (up to 75%) by 2020 of people aged 20-64 as a key objective backed by the Youth employment package of the EU "Com 2012 727" aiming to get up to 650.000 young people into work throughout Europe.

 

We actively support these initiatives and contribute to strengthen the cap sized corporations and SMEs in Germany, throughout EU and beyond. 

External sources:

* SMEs - according to the definition of the European Commission SMEs are:

  • Micro (up to 2 Mio. € turnover/year or 10 employees),
  • Small (up to 10 Mio. € turnover/year or 50 emloyees) and 
  • Medium ((up to 50 Mio. € turnover/year or 250 employees)  enterprises
** Annual Report EU 2015/2016 SME
Annual Report - EU SMEs 2015-16.pdf
PDF-Dokument [21.9 MB]

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