Small business owners in Germany: desperation despite economic promises!

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The situation of the self-employed in Germany: challenges, bureaucracy and the influence of the government on small businesses in 2025.

Small business owners in Germany: desperation despite economic promises!

In Germany, around 3.8 million people are self-employed, with the majority of them working as small or solo self-employed people. These self-employed people include musicians, ice cream stand operators, freelance authors and jewelry designers. Despite the federal government's announcements of an economic revival, the mood among the self-employed has deteriorated significantly, according to the ifo Institute. This development is causing great concern in the industry.

One of the independent entrepreneurs is Anja Kühn, who has been working as a make-up artist in Leipzig for 23 years. She offers her services for weddings and stage performances and can look back on a good order situation. Nevertheless, Kühn criticizes the high level of bureaucracy that prevents her from doing her creative work. In particular, the General Data Protection Regulation and the requirements for e-invoices represent significant hurdles for them.

Disappointment with political support

Andreas Lutz, a representative of the Association of Founders and Self-Employed People in Germany, has noticed increasing disappointment among small business owners regarding the federal government's coalition agreement. He emphasizes that large companies receive significantly more support from politicians, while solo and small businesses, which are an important part of the German economy, are largely neglected.

Small business owners also face financial challenges. You pay twice as much for health insurance because there is no employer to cover half. They also have to take care of retirement provision themselves, which makes the situation even more difficult. Oliver Holtemöller from the Leibniz Institute for Economic Research in Halle argues that the number of self-employed people in Germany has been declining for years. This phenomenon is attributed, among other things, to a declining willingness to take risks and a negative public image of entrepreneurship.

Challenges for new customers

According to the Federal Statistical Office, due to these conditions, only just under four percent of all employed people currently work as solo self-employed people. Anja Kühn notes that things are much more difficult for new self-employed people today than when she started out 23 years ago. The challenges they face cast a shadow on the success story of entrepreneurship in Germany.

The reporting by MDR and Mirror clearly shows that the self-employed in Germany have an urgent need for support, despite their diverse talents and services. Given the current challenges, it is crucial that politicians take measures to help this important group in society.