1. SME Promotion and the current situation of the German Mittelstand rfciz marburg 5/20121

2. What is SME Promotion resp. Mittelstandspolitik? Why did German Mittelstand came out of the crisis strengthened? rfciz marburg 5/20122

3. SME Promotion: Improvement of framework conditions for SMEs last but not least because of their importance for employment rfciz marburg 5/20123

4. EU countries comprise historically a multitude of SME programmes rfciz marburg 5/20124

5. EU SME Promotion EU: 20 Mill SMEs, > 99% of all businesses Small Enterprise Charter 2000 EU - SBA Small Business Act 2008 SME Performance Review National Fact Sheets (Best Practices) EU Small Business Portal Integrale Part of Lissaboa Agenda rfciz marburg 5/20125

6. Under the Charter, Member States and the Commission took action to support small enterprises in ten key policy areas: Education and training for entrepreneurship; Cheaper and faster start-up; Better legislation and regulation; Availability of skills; Improving online access; Getting more out of the Single Market; Taxation and financial matters; Strengthening the technological capacity of small enterprises; Making use of successful e-business models and developing top- class small business support; Developing stronger, more effective representation of small enterprises’ interests at Union and national level. rfciz marburg 5/20126

7. EU SBA 2008 – 10 Bullets 1.Promotion of private entrepreneurship 2.Second chance after insolvency 3.SME right of way 4.SME sensitive national administrations 5.Increased SME participation in public tenders 6.Improved access to finance and payment morale 7.Improved integration in the internal market 8.Further qualification und innovation 9.Environmental protection as business opportunity 10.Enhanced share in market growth rfciz marburg 5/20127

8. Core Innovation Programme SME BMWi 2008 – 2013 Threshold < 1000 employees, before < 500 Programme for marketorientated promotion of technical/technological innovations Objective: to promote the innovate power of SMEs rfciz marburg 5/20128

9. Increase research, development and innovation Reduce financial risks of innovative projects Transfer research results in marketable products Improve cooperation between SMEs and research institutions Increase SME research and development and networking engagement Improve SME research, development and networking management. rfciz marburg 5/20129

10. Promotion Modules Kooperationsprojekte (ZIM-KOOP) Gefördert werden Kooperationsprojekte zwischen KMU und von KMU mit Forschungseinrichtungen. Kooperationsprojekte (ZIM-KOOP) Einzelprojekte (ZIM-SOLO) Gefördert werden einzelbetriebliche FuE-Projekte von KMU. Einzelprojekte (ZIM-SOLO) Netzwerkprojekte (ZIM-NEMO) Gefördert werden externe Management- und Organisationsleistungen für die Entwicklung marktorientierter Netzwerke innovativer KMU. Netzwerkprojekte (ZIM-NEMO) rfciz marburg 5/201210

11. BMWi 9 SME bullets 1/2010 rfciz marburg 5/201211

12. rfciz marburg 5/2012 1.Enhanced SME financing 2.Credit Mediator 3.New risk capital for high tech exploration 4.Promote business start ups and business heredity 5.Strengthening of SME innovation capacity 6.Secure skilled labour 7.Unlock foreign markets 8.SME tax benefits 9.Enhanced SME dialogue 12

13. German Mittelstand Strengthened out of the crisis? rfciz marburg 5/201213

14. Mittelstand - SME ? S: < 10 employees, < turnover 1 Million Euro M: 10 to 500 employees, max 50 Millionen Euro turnover rfciz marburg 5/201214

15. Roughly 3,6 Millionen German SMEs > 99% of all taxpaying companies 16 Millionen employees under social securiry 65,9 % of all employees under social security 38 % of total company turnover 47 % of net value added 83,0 % of all trainees rfciz marburg 5/201215

16. Owners equity: SME: Owners equity 15 – 20 % of total assets Large E: Owners equity 30 - 35 % of total assets rfciz marburg 5/201216

17. German SMEs and Foreign Markets Export 2010: 26% (rising 2012 30%?) 96% into Eurozone International engagement in order to gain - new markets - new product sources - new knowledge - skilled labour - Outsourcing not very relevant (German export quote 70%, > 1 Trillion €, almost 10% of world-trade 59% to EU, 40% to Eurozone) rfciz marburg 5/201217

18. Crisis expectations 2008 -Insolvency spree -Takeovers through risk capital -Credit crisis -Lay off sprees -Resource scrambles inside companies rfciz marburg 5/201218

19. Four years after the crisis 2012 German Mittelstand largely robust and successful rfciz marburg 5/201219

20. -Fewer companies then expected bankrupt and taken over -Maschinery, plant and car manufacturing, chemical and pharmaceutical industries strengethened rfciz marburg 5/201220

21. Key Causes of the Success 1 Research & Innovation continued by and large during crisis German maschinery up to date = energy & raw material saving Orders from Asia were back earlier than expected (China!) rfciz marburg 5/201221

22. Key Causes of the Success 2 Permanent staff largely kept (further training and short-time work) Financial reserves build Companies are proffessionally structured Cost flexibility through corporatist agreements (state, unions, employers) rfciz marburg 5/201222

23. Key Causes of the Success 3 Highly motivated and skilled staff Use of temporary employment Relocating and offshoring Early internationalisation of German companies (on location in Asia) rfciz marburg 5/201223

24. German SME Challenges Lack of skilled labour (demography, vocational training) Buerocracy and overregulation (from communities to EU) Credit access Refinancing at the capital markets at companies own risk EURO-Crisis rfciz marburg 5/201224

25. rfciz marburg 5/201225