Ageing of German SME owners is putting a dampener on investment

Demographic change has reached small and medium-sized enterprises. The average age of SME owners in Germany is rising fast. More than 1.3 million business owners are already aged 55 or older. At the same time, not enough business founders are coming up through the ranks. Accelerated ageing poses challenges because the propensity to invest decreases with the entrepreneur's age. The consequence is an investment backlog, a trend that must be halted. One option is for the exiting owner to be given a share of the return generated by an investment they made in the late stage of their ownership after they leave. Early succession planning can be helpful.

Ageing of German SME owners is putting a dampener on investment(PDF, 117 KB, non-accessible)

Press release