Klaus Eberhard has an unusual idea when it becomes clear that his children do not want to take over the technology company he founded, Iteratec. The entrepreneur decides not to sell his company to an investor - and instead pitches his employees to take over the company.
"I wouldn't have been able to look in the mirror if I had sold Iteratec just for the money," the 65-year-old entrepreneur told DV. The Munich-based IT company is now run by a cooperative with 350 members who were previously employees of Klaus Eberhard. The company produces software for concerns such as BMW and Deutsche Bahn (German railways).
Eberhard is not the only entrepreneur in Germany who is having trouble finding a successor. For almost 70% of small and medium-sized enterprises, this question turns out to be a big challenge. Namely, these family businesses are the backbone of the middle class in Germany and of the German economy in general. They also make a significant contribution to the "Made in Germany" brand, which has long become a symbol of quality, reliability and stability. In the past, these small and medium-sized enterprises could lead entire industries, but today they are desperately looking for someone to lead them.
Generation change
About one-third of business owners over the age of 60 -- that is, the former baby boomers who are business bosses today -- want to retire. Traditionally, family members take over leadership. But while business heirs were once considered lucky, today that role seems to have become more of a burden.
This is precisely the case with Caroline (her name has been changed by the editors). She is a potential heir to the family-owned technology company from southern Germany, but has strong doubts when thinking about the future of the electronic components business for automotive supplier Bosch. Although the company is doing well in the market, Carolyn sees no point in taking over a company whose products, she fears, will soon not be needed.
"We are not convinced that we will survive as a company in Germany. Our customers are aware that German technology is no longer unique," says the 25-year-old woman, adding that the same products can now be produced much cheaper in China.
This awareness of risk is causing more and more young Germans to withdraw from the family business. Neither Carolyn nor her sister plan to follow in their parents' footsteps when they retire. According to a study by the Ifo Institute, more than 40% of family businesses questioned were unable to find a successor among their own family members.
Benjamin Schöfer from the German Association of Small and Medium Enterprises advises companies on how to organize business succession. "The business environment in Germany has become less attractive for young company managers," says Schöfer, pointing to high corporate taxes, rising energy costs and declining competitiveness, for example. In addition, Germany and the EU have red tape, laws and regulations that make long-term planning difficult. "A lot of companies have to hire specialists just to find their way through the maze of regulations and financing options," says Schoefer, referring mostly to financing programs that are supposed to help, but are often just too much. complex.
"I've been around the world, but I've never planed a piece of wood"
Moritz, who does not want his surname to be mentioned, believes that most young people "prefer to go to university rather than get their hands dirty". The 29-year-old Moritz's family has been in the furniture business for over 300 years. But unlike his ancestors, Moritz was never encouraged to take over the family business - instead of learning the ins and outs of the trade, he followed his interests, studied at university and traveled extensively around the world.
Now that Moritz's uncle is about to retire, the family faces a problem: Moritz doesn't have the necessary skills and qualifications to take over the company. "I have traveled the world with a backpack on my back and I have a university degree - but I have never planed a piece of wood," the young man admits self-critically.
The case of Benny Khan is quite different - he is among those who benefit from the current situation. Without hesitating for a moment, he immediately accepted the management position offered to him in the software company where he worked. After none of the heirs of the owner wanted the job, Benny Khan, who is only 27 years old, took advantage of the opportunity that opened before him.
"It's never too late"
But will there be enough young Germans willing and able to continue strengthening the backbone of the German economy?
"If it weren't for so many risks, I would have taken over the business," says Carolyn, the potential heir to the auto parts maker. Meanwhile, Moritz is seriously considering the possibility of entering the furniture business. "It will take me at least seven years to master this profession, and then I will have to graduate," he says. But then he adds: "It is never too late".