Almost One in Five of Self-Employed Sees Their Economic Existence at Risk in Germany
18% of self-employed fear they will be forced out of business. That number was 16.5% last October. This figure is significantly higher than in the economy as a whole (7.3%). The main reason is a lack of orders. “The self-employed are under increasing economic pressure,” says ifo expert Katrin Demmelhuber.
Almost half of those surveyed (48.5%) reported too few orders in October, compared to 44.4% in July. The proportion is higher among the self-employed than in the economy as a whole (41.5%). “Due to the economic uncertainty, large companies are cautious about placing orders,” adds Demmelhuber.
The business climate for the self-employed and microenterprises deteriorated for the third time in a row in October. The “Jimdo-ifo Business Climate Index for the Self-Employed” fell to -22.0 points*, down from -21.4 points* in September. The self-employed assessed their current business as being worse. Nevertheless, expectations were somewhat less skeptical.
The ifo Institute has been publishing the Jimdo-ifo Business Climate Index for solo self-employed persons and microenterprises (with fewer than nine employees) since August 2021. As in the composite index, all sectors of the economy are taken into account. However, its main focus is the service sector.
*Balances, not seasonally adjusted
Source: ifo Institute
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