The Mittelstand includes independent SMEs and large family-owned businesses
More than 3.4 million companies in Germany are classified as small and medium-sized enterprises (SMEs) according to the European Commission's definition of SMEs. This is more than 99% of all private sector businesses in Germany.
The SMEs generated over 2.66 trillion euros according to the latest statistical data in 2022. This is more than 27% of the total revenue in Germany. Overall, they contributed 55.7% to the total net value added by all companies – 6% more than in 2021.
More than half of all employees (19 million) in Germany work in a micro, small, or medium-sized enterprise. Additionally, over 70% of all trainees are found in SMEs. But the number of trainees in micro enterprises (with fewer than 10 social security-contributing employees) has been declining for years. This means that in the medium term, these companies will probably no longer be able to cover their demand for skilled labour through their own in-company vocational training.
The Mittelstand includes SMEs and larger family-owned businesses
Oonly those companies where ownership and management are in the hands of a maximum of two individuals or their family members are considered Mittelstand according to the definition by the IfM Bonn. Companies with more than 250 employees therefore are also classified as Mittelstand if family members still hold at least 50 % of the company shares and are actively involved in management. The IfM Bonn annually determines the economic significance of the Mittelstand based on the SME definition because the qualitative characteristics of the Mittelstand (type of management, ownership structure, and economic independence) are not considered in official statistics.
The IfM researchers estimate also regulary the number of family-owned businesses, their share of total revenue and the total employment in Germany. According to the latest estimate in 2019, approximately 3.2 million family-owned businesses generated around 37 % of all revenues and employed about 56 % of all employees in Germany.
