What is the current state of the world and the EU in fall 2024?

From a global perspective, I see growing political and economic uncertainties that harbour risks for companies. What is the fundamental situation regarding open markets and free trade? For instance, what is happening in the Indo-Pacific or in the USA? What is happening geopolitically and how are we coping with the direct and indirect effects of increasing crises, conflicts and wars worldwide?

In Europe, I see a new EU Commission and a new EU Parliament coming into office. Which economic policy priorities will not only be named in Brussels, but also implemented over the next few years? Which of these will have a tangible impact in Germany?

Many questions and few answers. The economy has to navigate in the fog. This is a major challenge for entrepreneurs. This ties up energy that we need for the further development of our companies. In any case, it makes entrepreneurial planning for the foreseeable future difficult.

This view of and into the world is painful. What is the situation in Germany?

We are experiencing economic and structural weaknesses in Germany. The economy is sluggish, investments are stagnating and there is a lack of clear prospects. High energy prices, a shortage of labour and skilled workers and infrastructural deficits are the main structural burdens. So far, we have not seen any convincing steps from European and national politicians to noticeably improve this environment.

The climate in cooperation between large, medium-sized and small companies is also deteriorating and there is a noticeable crunch in collaboration. In many sectors and some regions, flexible and innovative value creation networks are in danger of breaking down.

As a result, the very recipe for success for our international competitiveness and prosperity is at stake. The workforce is feeling this and I believe it is one of the reasons why social unrest is on the rise.

The crucial question remains: what does all this mean for entrepreneurial resilience, economic competitiveness, social cohesion and political stability at the federal and state levels?

Germany as a business location is under pressure - or how would you describe it?

It is clear to me that the framework for us Mittelstand companies in our traditional location is shaky.

From a business perspective, the digital and ecological transformation - which we want and need to implement successfully - is changing many of the rules that have applied to date. While interesting market opportunities are emerging for some sectors and regions, existential challenges are growing in other areas.

Time and again, I see companies questioning generational thinking in the face of rampant regulation and rapid and cost-intensive investment and technology cycles. Successfully handing over a company to the next generation always involves major challenges and these are currently greater than ever. Incidentally, this is also because "entrepreneurship" is currently held in low esteem both socially and politically.

Can politics and the industrial Mittelstand still have a future?

Mittelstand companies must constantly reinvent themselves. In practice, I see a high level of motivation among the next generation of entrepreneurs at many Mittelstand companies and well-known family businesses. This is no different to the start-up scene.

For example, we are currently working on the transition from the sixth to the seventh generation in our company. This is challenging for everyone, but it also brings joy and boosts confidence.

Basically, I realise that with entrepreneurial spirit, inventiveness, reliability, patience, discipline, a sense of proportion and a well-founded desire for the future, entrepreneurs are constantly looking for viable paths - or at least further paths - forwards. Politicians are called upon to create suitable conditions for this, including all the necessary freedom. Politicians at federal and state level do not have a problem recognising this, it is mostly the implementation that is lacking.

If you are looking for paths and ways forward, you need reasonable goals. Clearly developed future scenarios can help to derive plausible options for action. This applies to both business and politics. Strategic thinking in advance is tedious but rewarding work towards a promising future. A look into the 2030s can show what we should do today to win tomorrow.