The world of business and finance in Germany is facing numerous challenges. Amidst high bureaucracy and steep taxes, many medium-sized companies are considering altering their course and expanding abroad.
According to a recent survey, it was revealed that 26% of those companies are considering abandoning their business activities, which is a strong indicator of the challenges they are facing.
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One-quarter of medium-sized companies are considering leaving Germany
The survey conducted by the Federal Association of Medium-Sized Business Environments indicates that one out of every five companies is already considering relocating abroad.
Entrepreneurs feel frustrated by the inhibition and bureaucratic constraints that hinder the growth of their businesses, as one-third of the surveyed companies consider excessive regulations to be a hindrance.
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More than 25% of companies indicate that high taxes constitute an obstacle to their success. These results carry a warning signal and call for empathy and support, especially when entrepreneurs in the business sector are seriously considering abandoning their businesses or relocating abroad.
In addition, approximately 40% of infrastructure companies in Germany assess their situation positively, while 36% of them commend the political stability.
This survey was conducted on approximately 1200 companies between 6th and 13th of July, amid the German Finance Minister’s preparation of a tax package worth 6 billion euros annually to ease the burden on the business sector.
The proposed measures include tax reduction, increased support for research and development, and expanding the scope of compensation for losses.
These measures require further discussion and consensus before being presented to the Cabinet and Parliament. It is expected that they will contribute to enhancing competitiveness and incentivizing more investment in Germany.
This survey reveals real challenges that medium-sized companies in Germany are facing and emphasizes the importance of taking measures to alleviate obstacles and enhance the economic environment.
Maintaining and supporting companies is crucial for preserving economic growth and stability in the country.
You can also easily learn more about the essential requirements for establishing a company in Germany.