SMEs are currently under considerable pressure: Germany has been in a phase of weak to negative growth since 2023. The willingness to invest is as low as it was last during the financial crisis of 2009. And the number of insolvencies is increasing... It is all the more important to take control of your company's future. After all, the future of a medium-sized company is decided not in boom phases, but in recession — namely by the decision of whether to invest in people, technology and networks.
Today, we are taking a look at four key areas of action that determine whether SMEs can emerge after the crisis with more modern processes, innovative teams and reliable partnerships — or whether they will permanently lose innovative strength and disappear from the market at some point.
Everyone is struggling with the recession. And when we're all in the same boat, we can work together to get out of this mess. One possible lever is a consistent open innovation approach: Instead of just looking for innovation in your own development department, address your questions to the outside world — to customers, suppliers, start-ups, universities and regional clusters. For example, you can involve key customers early on in the development of new products, work together with suppliers on energy efficiency and CO₂ reduction, set up pilot projects with technology start-ups or use test runs for new manufacturing concepts with universities. Your partner provides you with additional market information and ensures that the jointly developed innovations prevail along the value chain and do not get stuck in your own development area.
In discussions with medium-sized companies, I experience time and again that a perfect solution takes a long time to figure out — and in the end too little happens compared to the effort involved. Experience shows that, in view of rapid technological developments, it makes more sense today to enter into a permanent learning mode. Instead of a large digital project, for example, many small, well-prepared experiments make much more sense. Think, for example, of a pilot for digital shift journals, data connections from key machines or an AI-based quality forecast. You can get ideas on where and how you can make a meaningful start at industry events, trade fairs, training courses or external advice. Companies that continue to invest in production technology and digitization even in difficult environments are showing significant productivity and efficiency gains and are securing scope for future growth.
In the current period of weakness, the opposite of what would be necessary is often happening: Many companies postpone future investments, limit themselves to replacement investments and are thinking about staff reductions. KfW analyses indicate that this reluctance is only partly due to a lack of liquidity. On the other hand, uncertainty and a planning horizon that is too short are clearly observable. Anyone who lays off qualified employees in the current recession improves their balance sheet in the short term, but at the same time destroys the most important resource for future innovation and transformation processes.
My experience shows that recruiting, training and knowledge development are expensive and lost experience cannot simply be bought back. In the medium and long term, this strategy results in a permanent loss of competitiveness. My tip: Use periods of reduced workload to train your staff, build up digital skills and improve processes.
Mixed teams from different disciplines, age groups and cultures also act as an engine of innovation, but only if leadership actively uses diversity. Diverse workforces demonstrably make better decisions and produce more innovation than homogeneous groups. Combine the experience of older professionals, the digital know-how of younger employees and the perspectives of international colleagues in mixed teams that work together on solutions.
For me, shaping the future in SMEs means investing specifically in technology, cooperation and people, actively building networks and open innovation structures, and letting mixed teams work — and treating skilled workers as a scarce asset. Anyone who focuses on saving, postponing and laying off may be breathing space in the short term, but accept that their own business model will run out of steam in the next upswing.
Do you need support to actively shape the future of your company? In a joint discussion, we will clarify what goals you are pursuing for the next few years and work together to develop ways to achieve them. I am looking forward to talking to you and working together to set the right course for the future of your company.
