Medium-sized businesses in crisis: How digitalization can save us!

Medium-sized businesses in crisis: How digitalization can save us!

In recent years, medium-sized businesses in Germany have increasingly struggled with crises, which highlights the need for resilience strategies. According to a current study by Innofact, which was carried out on behalf of Allgeier Inovar, 75 percent of the medium-sized companies surveyed had to carry out active crisis management in 2024. The survey, which was carried out at the end of April 2025 among 373 decision-makers, shows that companies with between 30 and 750 employees and annual sales of between 30 and 200 million euros face particular challenges.

A key result of the study is the finding that only 61 percent of companies had to take specific measures to deal with the crisis in the last three months. This shows that the situation may have improved slightly. Nevertheless, the need for effective resilience strategies remains high. The managing director of Allgeier Inovar, Ulrich Zahner, emphasizes the importance of these strategies, especially in the context of geopolitical risks that make reliable planning difficult. Increasing digitalization also contributes to the stability of companies, as the IT industry benefits from ongoing spending on digital modernization.

Measures to strengthen resilience

The top actions companies are taking to strengthen their resilience include:

• Kostenreduktion (43 Prozent)
• Optimierung von Prozessen und Lieferketten (41 Prozent)
• Investitionen in Digitalisierung und Künstliche Intelligenz (40 Prozent)

In addition, companies are planning further steps to minimize their risks. 65 percent of those surveyed intend to build redundant structures, while 59 percent aim for a broader diversification of sales markets and customer bases. Around 58 percent of companies want to develop internal risk and early warning systems.

Economic challenges and growth in bankruptcies

The economic situation remains tense. The number of corporate bankruptcies increased by over 20 percent in 2024 to 21,812 cases. A further increase to around 26,000 insolvencies is forecast for 2025. This development highlights the challenges that medium-sized companies face and underlines the urgency of crisis management strategies.

The ETL SME Compass 2023 also highlights that 57 percent of companies have perceived the issue of resilience as having increased in importance over the last five years. Nevertheless, less than half of the companies surveyed plan to take measures to improve their resilience in the medium term. A webinar taking place on October 5, 2023 in collaboration with Handelsblatt will address these topics in order to offer companies incentives and solutions on how they can emerge stronger from crises.

The study uses the example of the company USU Solutions International, which is listed as a best-case study in the ETL Mittelstandskompass 2023. The director of the Institute of German Economy, Prof. Michael Hüther, highlights the economic implications of this research and discusses how companies that implement resilience measures are more economically successful.

In summary, it can be seen that medium-sized businesses are under considerable pressure, but at the same time are using the opportunities to strengthen their resilience with the help of digitalization and strategic measures. How CRN and ETL report, the development of effective crisis strategies is the key to the long-term stability and success of these companies.