German Economic Slowdown Hits Smallest Businesses Hardest

New data reveals declining revenues and job cuts in micro-enterprises, with bureaucratic burdens and rising costs intensifying challenges.

The German economy continues to struggle, with the manufacturing sector seeing revenue declines for three consecutive years when adjusted for inflation.
Micro-enterprises with fewer than ten employees are facing the most severe impacts, including the start of workforce reductions.
Small businesses are particularly vulnerable to rising costs, increasing wages, and bureaucratic pressures, which they are less equipped to manage compared to larger firms.
Local businesses such as bakers and retailers are struggling to compete with larger supermarkets and online platforms, leading to closures in some cases.
Despite challenges, some sectors like construction and hospitality have shown signs of stabilization, while government-related industries have seen above-average growth in employment and revenue.