BDA AGENDA 25/25 | COMMENTARY OF THE WEEK | December 16, 2025

By Sandra Stein, Member of the German Parliament, Alliance 90/The Greens, family entrepreneur

Shaping inclusive economic growth: Policy dialogue at the World Summit for Social Development

Over 99 per cent of companies in Germany are small and medium-sized enterprises. These companies have not only contributed significantly to Germany's economic success story. They also take on responsibility in a variety of ways by training young people, integrating immigrants and promoting sports facilities. They create local jobs, pay taxes and social security contributions, and guarantee the preservation of our social security network. Last but not least, they fulfil a social function by bringing together people from different educational backgrounds, political convictions, and nationalities under one roof. If we want to strengthen the economy, society and social cohesion in Germany, we must strengthen entrepreneurship. Blanket criticism of entrepreneurs does not help us. On the contrary, we must support our companies and reduce the burden of bureaucracy.

The challenges are enormous

The first step in this direction is recognising that many companies in Germany are under enormous pressure. Job cuts at large companies such as Bosch and ZF are just the tip of the iceberg. The decline in employment in small and medium-sized enterprises is happening much more quietly, but continuously, and in recent months at a significantly faster rate than in the economy as a whole. SME turnover has fallen by more than ten percent since 2022. The number of self-employed people is steadily declining. The future of up to 250,000 companies facing succession in the next ten years also remains unclear.

All these developments pose a threat to our global competitiveness and social cohesion. Where fear of job losses is growing, there is an increased risk that political extremes will gain power.

Tackling major challenges together

There are many reasons for the difficult economic situation facing German companies: rising energy and labour costs, increasing bureaucratic burdens, and geopolitical tensions such as the tariff dispute with the United States and growing competitive pressure, particularly from China. This makes it all the more important to pursue a decisive economic policy that strengthens entrepreneurship in Germany and sets the course for a sustainable and innovative business location. We need a policy that is based not on mistrust of entrepreneurs, but on partnership and trust. I am calling for binding practical checks for all laws to assess their feasibility, particularly for small and medium-sized enterprises and skilled trades. We need a digitalisation push in the country, a reduction in electricity tax for all businesses and genuine reforms of the social security systems that relieve the burden on employers and employees. The special infrastructure and climate neutrality fund must be used consistently for additional investment.

The tasks are enormous. They can only be tackled successfully by working closely with employers. If we want to solve the major challenges of our time, from the future viability of our location to coping with climate change and defending our freedom in Germany and Europe, we need strong entrepreneurship – here at home.