Economic sentiment is improving, but small businesses are suffering: the energy crisis and inflation are hitting hard!

Economic sentiment is improving, but small businesses are suffering: the energy crisis and inflation are hitting hard!

According to a report by www.mdr.de, the latest surveys by the Ifo Institute show that the overall economic mood is becoming more optimistic, but small and solo self-employed people remain pessimistic. The energy crisis and inflation have placed a significant burden on this group of entrepreneurs. Many small business owners describe massive declines in sales and using personal savings to keep their businesses running. The ifo Institute's mood maps show that small businesses are much more pessimistic about the future than the economy as a whole. Part of the problem is also seen in the uncertain political and economic situation in connection with the issue of a shortage of skilled workers and the energy transition. This has led to frustration, which is expressed in an open letter to Saxon politicians.

In this situation, small businesses seem to be particularly affected by crises. Large companies often have more resources and opportunities to overcome economic challenges. However, there are also positive examples such as beautician Beate Hertes, who, despite the difficulties, took on a trainee and continues to fight to keep her business running.

What this means for the market is that the uncertainty and financial stress on small business owners is affecting their business activities and investments. This can lead to weaker economic development overall, as small businesses make up a significant part of the economic dynamism. For consumers, this may mean that the range and quality of services will be affected, particularly in areas such as the service sector, where small businesses often operate. The industry as a whole could experience a large number of bankruptcies and business closures, resulting in a loss of diversity and choice in the market. This would harm both consumers and other companies that rely on a diverse business landscape.

The calculated market, consumer and industry impacts highlight the importance of government support and policy measures to address existing challenges for small business owners and improve their future prospects.