Emerging stronger from the coronavirus crisis

The impact of the coronavirus pandemic has hit the entire SME sector. A current study shows which groups of enterprises get through the crisis more easily and which ones struggle. KfW Research has published a position paper proposing economic policy measures so that Germany emerges stronger from the crisis. The coronavirus crisis has had a significant impact on the SME sector. The current study by KfW Research reveals that the crisis has not impacted all SMEs in equal measure but affects individual segments more than others. Small businesses, internationally active companies and enterprises that already had a weak credit rating in particular suffered declines in their equity ratios. By contrast, enterprises whose credit rating indicates well-developed management skills exhibit greater crisis resilience, as do those that carried out innovation and digitalisation projects already before the crisis.

Which enterprises have been hit hardest by the coronavirus crisis and what lessons can we learn from it?(PDF, 209 KB, non-accessible)

Despite the fact that incidence rates are rising again, the vaccination programme and the risk-based relaxation of the containment measures offer hope that Germany will get on top of the coronavirus pandemic in the foreseeable future. Accordingly, questions about what happens next are coming more to the fore. At the same time, we are able to better assess the size of the challenge involved in transforming to a resilient, digital and climate-neutral economy. The need to change course is becoming ever more urgent if we are to make Germany future-proof. We see the greatest need in five key areas of action: Crisis resilience, climate neutrality, digitalisation, globalisation and Europe. A targeted approach is necessary in order to harness the crisis-management momentum for the change of course towards sustainable recovery. The aim of this paper is to highlight specific intervention points for solutions within the areas of action already identified.

Emerging stronger from the coronavirus crisis – five areas of action for a sustainable transformation(PDF, 241 KB, non-accessible)