The business climate for self-employed individuals and small businesses has deteriorated significantly in September, according to data released by the Ifo Institute in Munich. The institute’s business climate index for this segment of the economy dropped to -19.8 points, a considerable decline from -13.8 points recorded in August.
“Many self-employed individuals are currently facing headwinds in their businesses” stated Katrin Demmelhuber, an Ifo expert. “Simultaneously, skepticism is growing regarding a swift economic recovery.
Self-employed individuals and small businesses continue to experience challenges in assessing their future business prospects. A substantial 30.4% of those surveyed reported difficulty in forecasting their business development, a slight increase from the 30.1% recorded in August. This persistent uncertainty remains higher than the overall economy, where the figure stood at 22.3% in September.
“An increasing number of self-employed individuals are facing an uncertain future” Demmelhuber added. Beyond the general unease, a notable increase has been observed in financing obstacles for some. The proportion of self-employed reporting difficulties in accessing credit has risen sharply from 34.9% to 45.1% compared to the previous quarter. This contrasts with a decrease in the equivalent figure for the broader economy, which fell from 31.4% to 29.1%.
The proportion of those surveyed engaged in credit negotiations has also increased amongst the self-employed, now standing at 10.8% compared to 9.6% previously. This level remains significantly lower than that observed in the overall economy, which is currently at 25.5%.