Small business owners in Germany head into 2025 with a bleak outlook. According to a survey published by the IfO Institute on Monday, 40.1% of solo entrepreneurs expect worse business in the next year, while nearly half expect no change from the already challenging 2024.
“For many self-employed individuals, 2025 is not on the horizon for a turnaround,” said IfO expert Katrin Demmelhuber. Only one in ten of the surveyed self-employed and small business owners expect an improvement in their business situation next year. The current economy lacks orders that can be awarded to self-employed individuals.
This pessimism is reflected in the planned investments: a third of the respondents plan to invest less in 2025. Only one in seven plans to increase investments. “Self-employed individuals are showing a similar low willingness to invest as the rest of the German economy,” Demmelhuber said.
Meanwhile, the business climate for self-employed and small businesses has slightly improved. This is the first increase in the corresponding index after declines in recent months. In November, it was at -21.3 points, after -22.0 in October. Discontent with ongoing business operations has decreased, while expectations continued to decline.