Michael Holz Institut für Mittelstandsforschung (IfM) Bonn

Transcription

1 Medium-Sized Enterprises (MSEs) in Germany Milan, 15. March 2013 Michael Holz Institut für Mittelstandsforschung (IfM) Bonn

2 2 Outline A B C IfM Bonn Institute for SME Research Medium-Sized Enterprises (MSEs) in Germany Competitive strengths of the German Mittelstand economy C.1 Internationalisation activities C2 C.2 Innovation and R&D C.3 Access to skilled labour / Dual apprenticeship system C.4 Access to finance

3 3 A1. IfM Bonn Institute for SME Research 1. Legal Structure Established in 1957 as a foundation of private law Founders: Federal Republic of Germany and the Federal State of Northrhine- Westphalia Task: (1) Analysing the status-quo, the development and problems of small and medium-sized enterprises, (2) making recommendations for SME policies and (3) distributing the research results to the general public 2. Main Research Fields Compilation and analysis of SME statistics Analysis of and recommendations for SME policies Enterprise life cycle Enterprise management 39 employees, thereof 21 researchers

5 5 B1. Key economic data for Germany, Year-on-year change in % (forecast) Gross Domestic Product 1) No. of employees (in Germany) Unemployment rate (absolute value in %) Consumer spending of private households 1) Domestic demand 1) Gross fixed capital formation 1) Exports 1) Imports 1) Gross wages and salaries (total) ) Price-adjusted values. Source:Federal Statistical Office; Federal Labour Agency; Joint Economic Forecast on behalf of the Federal Government Autumn 2012

6 6 B2. Definition and number of Medium-Sized Enterprises (MSEs) in Germany Manufacturing enterprises Legal form of a corporate company Between 50 and 749 employees Annual sales between 15 million EUR and 330 million EUR ( in 2006: million EUR) Independent ownership status 2006: 2009: 2009: Total number of consolidated MSEs: 1,472 1,240 1,240 Total number of non-consolidated d MSEs: 1,641 1,577 1,577 No closed panel, only partial overlap (37%)

7 7 B3. Macro Areas in Germany, 2009 North West Population: 13.2 million (= 16.1%) No. of enterprises: 557,000 (= 15.5%) No. of employees: 4,4 million (= 15.8%) North East Population: 16.4 million (= 20.0%) No. of enterprises: 668,000 (= 18.6%) No. of employees: 5,2 million (= 19.0%) West Population: 29.0 million (= 35.4%) No. of enterprises: 1,256,000 (= 34.9%) No. of employees: 9,5 million (= 34.7%) South Population: 23.3 million (= 28.4%) No. of enterprises: 1,117,000 (= 31.0%) No. of employees: 8,4 million (= 30.4%)

8 8 B4. Regional economic indicators, 2009 Financial strength th indicator (weighted) Share of manufacturing in gross value added (regional) Share in total of business enterprises in Germany R&D expenditures R&D personnel in % in % in % in % North East North West West South Total Source:Federal Ministry of Finance (2010), Statistisches Landesamt Baden-Würtemberg (2012), Stifterverband für die Deutsche Wissenschaft (2012), p.19, own calculations

9 9 B5. Number of MSEs and employees per region, 2009 No. of MSEs Total no. of employees Average no. of employees Vl Value added abs. in % abs. in % abs. in % North East , North West , West , South , Total 1, ,

10 10 B6. MSEs by economic sectors, 2009 Mechanical Engineering 45.3 Food and drinks 14.8 Personal and household goods 9.6 Other mfg. Industries 30.3 Total net sales in % of total - Chemicals and pharmaceuticals Metal manufacturing Paper, printing and publishing Other 1.8 Total 100.0

11 11 B7. Technology intensity of MSEs, 2009 Net sales in % of total Net VA per employee in EUR High technology ,100 Medium-high technology ,100 Low-medium technology ,500 Low technology ,800 Total ,900

12 12 B8. Distribution of MSEs by employment size classes, Chart 3.i - Distribution of MSEs by size as measured by number of employees in 2009 Number of companies (left axis); annual sales and employees (% of total, right axis) Number of companies 18 Num mber of compa anies Nt Net sales Employees Number of companies Net sales Employees annual sales and employee es (% of total l) Dimensional classes of employees in a decreasing order towards right Dimensional classes of employees in a decreasing order towards right.

13 13 B9. Economic performance of MSEs, 2009 Employment size VA per employee Labour cost/va NOM/VA VA/CI ROI in EUR Δ2006 in % Δ2006 in % Δ2006 in % Δ2006 in % Δ ,100 +8% % % % % ,300-4% % % % % ,700-4% % % % % ,400-11% % % % % NOM = Net operating margin; VA = Value added; ROI = Return on investment = [(NOM+I) / CI]; I = Interest income CI = Capital invested; GOM = Gross operating margin

14 14 B10. MSEs profitability by economic sectors, 2009 NOM/VA VA/CI ROI in % Δ2006 in % Δ2006 in % Δ2006 Food and drinks % % % Chemicals and pharmaceuticals % % % Other % % % Mechanical engineering Personal and household goods Paper, printing and publishing Manufacture of metals % % % % % % % % % % % % Total % % %

15 15 B11. MSEs profitability by macro area, 2009 NOM/VA VA/CI ROI in % Δ2006 in % Δ2006 in % Δ2006 North East % % % North West % % % West % % % South % % % Total % % % NOM = Net operating margin; VA = Value added; CI = Capital invested; ROI = Return on investment

16 B12. Net value added and labour cost per employee by economic sector, 2009 Chemicals and pharmaceuticals Paper, printing and publishing Mechanical engineering Net VA/employee Labour cost/employee Tangible fixed assets/employee in EUR Δ2006 in EUR Δ2006 in EUR Δ ,700 +6% 49,400 +8% 58, ,300-7% 49, % 53, ,100-10% 48,000-2% 31, Food and drinks 56,000 +9% 41,200 +2% 64, Other 52, % 42, % 38, Manufacture of metals Personal and household goods 51,000-18% 46, % 42, ,700-9% 40,700-2% 37, Total 56,100-6% 46, % 46,

17 17 B13. Value creation and labour costs in MSEs, 2009 (1) Labour cost per employee in EUR (2) Value added per employee in EUR Ratio (2) : (1) North East 39,600 53, North West 48,600 59, West 47,000 56, South 47,500 55, Total 46,700 56,

18 18 B14. MSEs financial account structure Assets in % Δshare Production activities: % - Net tangible fixed assets % - Working capital % Liabilities in % Δshare Net worth % Borrowings: % Financial activities: % - Investments and financial assets - Cash and marketable securities % Other assets % - Short-term % - Medium-and long-term % % Other liabilities % Total /- 0 Total /- 0 n=1,577

19 19 B15. MSEs financial account structure (closed panel) Assets Production activities: - Net tangible fixed assets in % Δabsolute numbers % % - Working capital % Financial Activities: - Investments t and financial assets % % - Cash and marketable % securities Other Assets % Liabilities in % Δabsolute numbers Net worth % Borrowings: % - Short-term % - Medium-and long-term % Other liabilities % Total % Total % n=589

21 21 C1-1. Export rates (exports/gdp) of the 30 largest economies in the world, 2010 Belgium 88,3 Canada 24,6 Netherlands Thailand 74,0 61,1 South Africa Indonesia 22,6 22,3 Saudi Arabia 55,5 Italy 21,9 South Korea Austria 45,9 40,4 France Australia 20,4 18,8 Germany 38,9 Argentina 18,4 Switzerland Sweden 36,8 34,2 Britain Spain 18,0 17,8 Poland 33,2 Venezuela 16,8 Norway 31,4 Turkey 15,6 Iran 30,5 Japan 14,0 Mexico Russia 28,8 26,9 India Brasil 13,1 9,4 China 26,6 USA 8,8 in % Source: Own calculations on the basis of World Bank (2012): Online Data Bank - Indicator GDP (current US-$) and World Trade Organization (2012): International Trade Statistics 2011, S. 24 (commodity exports)

22 C1-2. Share of the five most important commodity groups in total exports, 1995 and 2008, in% in billion EUR Vehicles and car parts 17,5 174,1 15,1 57,9 22 Machinery 14,8 16,0 146,9 61,3 Chemicals 13,9 13,3 138,0 51,0 Iron and steel products 6,3 62,7 6,0 22,8 Equipment for the generation and distribution of electricity 5,2 5,5 52,0 20, Source: destatis, Export, Import, Globalisierung, 2010, p. 16

23 23 C1-3. Share of SMEs with direct exports in in % DK SE BE NL PL IT EU-Ø ES IE UK DE FR AT FI Source: European Commission (2010): Internationalisation of European SMEs, p. 24

24 C1-4. Exporting companies in Germany, 2010, by turnover size-class Turnover size classes in 24 Share of exporting companies Number of exporting companies in each turnover size class in % million (Micro) (72,2 %) 8,6 2 million - 10 million (Small) (18,7 %) 46,7 10 million - 50 million (Medium) (6,6 %) 68,1 50 million and more (Large) (2,4 %) 80,4 In total, companies engage in export activities, i.e. 11,2% of all German enterprises. Source:Statistisches Bundesamt: Umsatzsteuerstatistik; calculations by IfM Bonn

25 25 C1-5. Export turnover of German enterprises, 2010, by turnover size-class Turnover size classes in Export turnover billion Share of exports in total t turnover per size class in % million (Micro) 20 (2,1 %) 2,9 2 million - 10 million (Small) 53 (5,55 %) 90 9,0 10 million - 50 million (Medium) 114 (11,8 %) 16,0 50 million and more (Large) 779 (80,7 %) 23,9 The total export volume amounted to 965 billion ; the average export rate to 18,4 %. Source:Statistisches Bundesamt: Umsatzsteuerstatistik; calculations by IfM Bonn

26 C1-6. Internationalisation activities of large German family enterprises 1), 2010 Export 87,4 26 in % export rate: [36,8] Sales and service subsidiaries abroad 64,5 Co-operation agreements with foreign enterprises 51,5 Own production facilities abroad 48,5 Equity participation or Joint Ventures abroad 40,6 Contract/toll manufacturing 27,6 1) Annual turnover > 50 million. Source:BDI/Deutsche Bank, Die größten Familienunternehmen in Deutschland, 2011, carried out by IfM Bonn

27 27 C1-7. Evaluation of own competitiveness compared to foreign competitors, industrial Mittelstand, 2011, in % Do foreign competitors have an important role in your market? Own competitiveness compared to foreign competitors Counselling and service 78,4 21,2 0,4 Proximity to customers 74,4 19,4 6,2 No 34,7 Yes 50,9 Quality of products Market position, market share of main products 59,1 38,2 2,7 48,6 28,8 22,6 No, but expected 14,4 Level of innovation Price competitiveness 15,0 44,4 26,5 43,0 58,5 12,6 n = Source: IfM Bonn (2011): BDI-Mittelstandspanel Herbst 2011, S. 14 (much) better same (much) worse

28 C1-8. Motives for foreign investments of German industrial enterprises, in % ) Sales and customer service Market development (production units) Cost savings 1) In 2002, no survey was carried out. Source: DIHK (2012): Auslandsinvestitionen in der Industrie. Spring 2012, p. 5

29 29 Outline A B C IfM Bonn Institute for SME Research Medium-Sized Enterprises (MSEs) in Germany Competitive strengths of the German Mittelstand economy C.1 Internationalisation activities C.2 Innovation and R&D C.3 Access to skilled labour / Dual apprenticeship system C.4 Access to finance

30 30 C2-1. Total R&D-expenditure as share of GDP in the EU-27 and in selected OECD countries, 2010 in % Finland Sweden Denmark Germany Austria France Slovenia Belgium Netherlands Ireland UK Luxemburg Et Estonia Portugal Czech Republic Spain Italy 2,82 Hungary Lithuania Poland Malta Slovakia Latvia Bulgaria Greece Cyprus Romania Israel South Korea Japan Switzerland USA China Source: BMBF, Bundesbericht Forschung und Innovation 2012, p. 403, based on Eurostat- and OECD-data

31 C2-2. Germany s industrial R&D-structure in international comparison, 1991 and 2007 Sector OECD Germany High technology 42,2 40,1 34,9 27,9 Pharmaceuticals 6,8 12,4 5,6 7,7 Medical, precision & optical instruments 5,6 6,6 1,7 7,2 Radio, television, communication equipment 11,6 13,8 14,5 7,1 Aircraft & spacecraft 10,2 4,9 8,1 4,3 Office, accounting, computing machinery 7,9 2,4 4,9 1,6 Medium-high technology 30,6 25,6 53,0 53,3 Vehicles construction 10,8 11,4 17,5 31,4 Mechanical engineering 5,5 5,9 10,5 11,1 Chemicals 8,4 4,4 14,2 7,3 Electrical machinery & apparatus 5,5 3,0 10,3 3,1 Railroad & transport equipment 0,3 0,9 0,4 0,4 Other industrial sectors 11,1 9,7 8,2 7,5 Services 14,2 22,8 2,4 10,6 Other economy 20 2,0 20 2,0 16 1,6 07 0,7 Total Source:NIW, Stifterverband, FuE-Aktivitäten von Wirtschaft und Staat im internationalen Vergleich, 2011, p.103, based on OECD-data

32 32 C2-3. The business economy s financing share in R&D conducted by public research institutions, 2008, in % Total Universities thereof: Other public research institutions Germany 12,4 15,1 9,3 Netherlands 1) 10,0 7,5 17,1 Finland 9,4 7,2 14,2 Canada 7,7 8,5 4,8 South Korea 7,6 12,0 3,5 UK 5,5 4,6 7,9 Sweden 1) 4,8 4,9 4,4 France 4,2 2,2 6,8 USA 4,2 5,7 2,8 Italy 2,3 1,1 5,3 Japan 3,0 3,0 0,7 EU-15 7,5 2) 7,2 2) 8,0 2) OECD 5,4 2) 6,5 2) 3,7 2) 1) 2007 instead of ) Estimations. Source:NIW, Stifterverband, FuE-Aktivitäten von Wirtschaft und Staat im internationalen Vergleich, 2011, p. 37, based on OECD-data

33 33 C2-4. Share of SMEs with product- or process innovations, in % DE BE FI SE AT DK IT EU-Ø FR NL ES IR UK PL Quelle: European Commission (2012): Innovation Union Scoreboard 2011, Annex A: Current Performance

35 35 C3-1. Key features of the dual apprenticeship system in Germany organised by Private sector + Public sector carried out as Training at the work place (practice) + Classroom tuition (theory) conducted in Companies + Part-time vocational schools financed by Companies + on the basis of Training contract + regulated by National laws and regulations + Federal states ( Länder ) & local municipalities Compulsory attendance at vocational school Laws and regulations of the Federal states e.g. Vocational Training Act (BBiG), regulated in 348 Training Directives + e.g. school laws, curricula Business chambers in co-operation supervised by with trade unions + School-supervision bodies (Land-level) certified with Germany-wide recognised certificate

36 36 C3-2. Annual new entrants into different sectors of education and training, Vocational training Transition system Acquisition of university University courses (after general entrance qualification (tertiary education) school education) Source: Bundesinstitut für Berufsbildung (BIBB) (2012): Datenreport zum Berufsbildungsbericht, p. 49

37 C3-3. Participation of establishments (local units) in dual apprenticeship training by establishment size, 2009 in % establishments t with employees and more Total No authorisation Authorisation but no active participation p Active participation Source: Institut für Arbeitsmarkt- und Berufsforschung (IAB) (2010), p. 24

38 38 C3-4. Training enterprises gross and net costs per training place, annual average, 2007 Cost types in EUR in % Gross costs ,0 thereof: Labour costs for the apprentice ,1 Labour costs for the trainer(s) / instructor(s) ,5 Equipment and material costs 691 4,5 Other costs ,9 Revenues generated by the apprentice Net costs Further not quantified or immaterial economic benefits Source: BIBB, Datenreport zum Berufsbildungsbericht 2012, p. 262

39 C3-5. Satisfaction of training establishments with the costbenefit ratio of apprenticeship training, Employment size class in % More than 500 employees employees employees employees Training sector Liberal professions Civil service Industry and trade Craft sector (very) satisfied Source: Bundesinstitut für Berufsbildung (BIBB): Kosten- und Nutzenerhebung 2007, p. 241 average rather / very unsatisfied

40 40 C3-8. Youth Unemployment in the EU-27, third quarter 2012 in % Germany 8,1 France 25,0 Austria Netherlands 9,1 9,5 Lithuania Poland 26,1 26,7 Denmark 13,3 Bulgaria 26,8 Malta Luxembourg 15,8 17,77 Cyprus Hungary 27,1 29,3 Finland Czech Republic 18,8 19,0 Ireland Latvia 30,6 31,0 Belgium 19,2 Slovakia 34,5 Estonia 20,3 Italy 35,2 United Kingdom 20,4 Portugal 39,3 Romania Slovenia 22,4 23,9 Spain Greece 54,1 57,0 Sweden 24,0 EU-27 22,9 Source: Eurostat, Youth Unemployment Statistics, 2012

42 42 C4-1. Main features of the German housebank system (relationship banking) Mittelstand companies have close, confidential and long-term-oriented relationship with one main bank, their "house bank" Companies are willing to disclose sensitive economic data Reduction of information asymmetries More reliable and qualified risk-assessments help to reduce credit risks for the banks Lower interest rates to be paid by the companies Relatively easy access to long-term bank loans, even under difficult economic circumstances Broad supply of public (financial) support programmes on national and Landlevel, delivered mainly via house banks

43 C4-2. Impact of the global economic and financial crisis on confidence in the banking system, Mittelstand companies, 2010 Confidence 43 in % into the German banking system as a whole into our house bank into our personal bank advisor has increased unchanged has declined Source: Commerzbank (2010), p. 27

44 44 C4-3. Share of manufacturing companies having difficulties in acquiring bank credits, in % Enterprise size: small medium large Source: Ifo Institut (2013)

45 C4-5. Financing instruments of (very) high importance for large family enterprises 1), in % Financing out of cash-flow 87,6 Bank loans 45,3 Additional (internal) equity capital 38,3 Leasing, Factoring 22,8 Public financial support (loans) 15,11 (external) Private Equity Capital 8,2 Capital market instruments 6,1 Mezzanine-capital 5,1 1) Annual turnover > 50 million. Source: BDI/Deutsche Bank, Die größten Familienunternehmen in Deutschland, Autumn 2012, carried out by IfM Bonn

46 C4-6. Mittelstand companies interest in acquiring Private Equity Capital, 2011 in % 46 Already acquired 1 Yes, interested No interest n=533 Source: Müller/Dieckmann/Külcür (2011), p.24

47 47 C4-7. Disadvantages of Private Equity Capital as perceived by Mittelstand companies, 2011 in % Sharing/ transfer of decision- making competencies 65,0 Lacking transparency 45,0 Different enterprise and management cultures 35,0 Insufficient social competence 30,0 Other reasons 6,0 multiple answers; n=533 Source: Müller/Dieckmann/Külcür (2011), p.25

48 48 Thank you for your attention! Contact Dipl.-Vw./Dipl.Verw. Michael Holz Institut für Mittelstandsforschung (IfM) Bonn Maximilianstr. 20 D Bonn, Germany Das IfM Bonn ist eine Stiftung des privaten Rechts. Phone:

49 Key figures on Small and Medium-sized Enterprises (SMEs) in Germany, 2009/ Enterprises 1) Turnover 1) Employees 1) in % 99,6 36,9 60,0 Apprentices in local units 2) Net value added 3) 82,4 51,8 Share of SMEs (quantitatively defined) 1) SMEs: max. turnover of 50 million and max. 499 employees. 2) SMEs: local units with max. 499 employees. 3) SMEs: max. turnover of 50 million. Source: Federal Statistical Office Germany; Federal Labour Agency; Calculations by IfM Bonn 05/2012

50 50 Good practice factors of the German dual apprenticeship system Commonly viewed as a key factor sustaining the competitiveness of the German economy Ensures steady supply of skilled employees (for middle management level) Consensus-oriented public-private partnership (enterprises, business chambers, trade unions, federal and Land Land -ministries, school authorities etc.) Contents of training developed jointly by business associations, trade unions and the federal government in an institutionalised framework High-quality training according to commonly agreed national standards, ending with a Germany-wide recognised certificate Facilitates the set-up of (national) occupational labour markets and increases nation-wide labour mobility Facilitates transition into regular employment Wide consensus in society to provide all school leavers with vocational education and training High level l of participation i from companies and youths in vocational training i Authorisation/certification of training enterprises and training instructors Monitoring and oversight to ensure high quality levels Approx professional experts work on an honorary basis in the examination boards