Demographic trends are having an increasingly significant impact on business succession. In 2017, exactly 6,674 senior entrepreneurs sought advice from their local Chamber of Industry and Commerce—a record high since tracking began in 2007. In 2017, 4,321 people expressed interest in taking over a business. This was announced by the German Association of Chambers of Industry and Commerce.
Of the 6,674 senior business owners mentioned, 47 percent had not yet found a suitable successor at the time of the consultation. And 70 percent of potential buyers had not yet identified the right business. These are record highs in the Chamber of Industry and Commerce statistics.
The gap between supply and demand is likely to widen further in the coming years. This is due in part to the growing shortage of skilled workers; well-educated individuals who are eligible for succession also have good prospects for well-paid contracts in executive positions at companies.
Tax law is also dampening the interest of potential successors. According to the DIHK study, 25 percent of potential successors consulting with the IHK now report that uncertainty regarding the application of the new inheritance tax law is complicating succession within families. According to the study, this, too, is a record high. A DIHK spokesperson stated: “It is currently virtually impossible to develop economically sound scenarios.”
Rising Negative Sentiment—Politicians Must Take Responsibility
From the DIHK’s perspective, policymakers must also provide relief in other areas. This is also reflected in the survey. For example, 18 percent—or 1,000 in absolute terms—of the older entrepreneurs advised by the Chambers of Industry and Commerce (IHKs) would no longer start their own businesses today.
The senior entrepreneurs cite, above all, the shortage of skilled workers and increasing bureaucracy as the main causes of the negative sentiment. According to the DIHK, the burdens of bureaucracy have gotten out of hand. “Policymakers should therefore quickly establish and implement the key provisions of a third Bureaucracy Relief Act,” said a DIHK spokesperson.
The DIHK sees it as a ray of hope that the Chambers of Industry and Commerce (IHKs) are experiencing growing interest in topics related to starting a business and business succession. According to the survey, significantly more participants attended IHK succession days and seminars than in previous years. In 2017, 12,506 people attended these events—an increase of just over 18 percent compared to the previous year.
Including consultations, the IHKs recorded a total of 23,501 in-person contacts regarding business succession—14 percent more than the previous year. In 2017, women accounted for a quarter of all those interested in taking over a business, also a record figure—though this time a welcome one.
