KfW Research
KfW SME Panel

The KfW SME Panel (KfW-Mittelstandspanel) has been conducted since 2003 as a recurring postal survey of small and medium-sized enterprises in Germany with annual turnover of up to EUR 500 million. With a database of up to 15,000 companies a year, the KfW SME Panel is the only representative survey of the German SME sector, making it the most important source of data on issues relevant to SMEs. As it is represen¬tative of all SMEs of all sizes and across all industries in Germany, the KfW SME Panel offers the possibility to conduct projections for micro-businesses with fewer than five employees as well.

Edition 2025

Steady course but headwinds loom: SMEs were stable in recession year, trade conflicts on the horizon

Despite economic headwinds, SMEs exhibited stability last year. Their turnover increased slightly, employment rose to a record level and profit margins are robust amid continuing cost pressure. However, they continue to show little inclination to invest, with larger businesses in particular exercising restraint. The investment outlook, at least, is more favourable. There are cautious indications of an investment rebound in the SME sector. Interest expenses have grown significantly, reaching the highest level since 2014. SMEs’ debt sustainability ratios are nonetheless high, thanks in part to their solid financial basis. Their equity base remains stable. These are the findings of the KfW SME Panel 2025, which paints a comprehensive picture of the present situation and the development of small and medium-sized enterprises during the past year.