Restructurig i SMEs: Germay Click for cotets Wyattville Road, Loughlistow, Dubli 18, Irelad. - Tel: (+353 1) 204 31 00 - Fax: 282 42 09 / 282 64 56 email: iformatio@eurofoud.europa.eu - website: www.eurofoud.europa.eu
Cotets Itroductio Relevace of differet types of restructurig for SMEs Drivers of restructurig Distictive characteristics of restructurig i SMEs Mai challeges ad costraits facig SMEs i restructurig Busiess support from public ad private sources Outcome of restructurig Coclusios ad policy issues Bibliography 1 7 16 19 25 29 34 38 41
Itroductio About the project I 2011 2012, the Europea Foudatio for the Improvemet of Livig ad Workig Coditios (Eurofoud) coducted a research project o restructurig i small ad medium-sized eterprises (SMEs). The aim of this project was to lear more about: the relevace of various restructurig types for SMEs; the drivers of SME restructurig; how restructurig is aticipated ad maaged i SMEs; the orgaisatioal ad employmet effects; factors that favour or hider successful restructurig. The amout of exteral support available (or required) for employers ad employees i SME restructurig was also ivestigated to idetify potetial ways of improvig policy. This research project was coducted i all the EU27 Member States. This, the atioal backgroud report for Germay, aims to summarise previous research ad relevat available stadardised data, to map what iformatio is already available ad to idetify kowledge gaps. The literature ad data review showed that there are hardly ay stadardised structural busiess statistics i Germay that allow for aalysig SMEs restructurig activities. Similarly, regularly coducted surveys that cover restructurig topics could oly be partly used here, as they seldom differetiate their fidigs by compay size. There are several mauals for SMEs, published by public actors, employers orgaisatios or private cosultats. However, while they give guidelies ad recommedatios o restructurig, they do ot provide iformatio about how it is actually doe. Research coverig this topic is comparatively widespread as regards specific restructurig types (for example, iovatio ad iteratioalisatio while there is little research o outsourcig, relocatio or mergers/acquisitio. I geeral, explicit focus o SMEs is rare. Cosequetly, the iformatio i this report is ot equally comprehesive for the idividual restructurig types ad topics dealt with here. Iformatio is particularly scarce o the processes followed by SMEs i the aticipatio ad maagemet of chage. Apart from the literature review here, there are also three Germa compay case studies, available i Eurofoud s database at http://www.eurofoud.europa.eu/emcc/labourmarket/restructurigsme.htm. Eve if they are merely illustrative, these do shed some light o the characteristics of restructurig i Germa SMEs. SMEs i Germay I Germay, SMEs are cosidered to have cotributed cosiderably to the ecoomy s recet dyamic growth. 1 Germa SMEs are geerally referred to as Mittelstad. I research, such as that of the Istitute for SME Research i Bo (IfM Bo), eterprises with fewer tha 500 employees ad aual sales of up to 50 millio are ofte cosidered as SMEs. Hece, the Germa uderstadig of SMEs (Mittelstad) is broader tha the Europea Commissio s SME defiitio 1 http://www.bmwi.de/de/service/suche,did=511410.html Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 1
Restructurig i SMEs: Germay a eterprise that employs fewer tha 250 persos ad has a aual turover ot exceedig 50 millio. The cocept lacks legal defiitio due to the importace of qualitative idicators related to it (such as etrepreeurial culture or spirit) rather tha a exclusive focus o employmet umbers ad sales figures. The Germa Mittelstad refers to busiesses i which the etrepreeur is so deeply ivolved that the firm ad the etrepreeur ca be described as oe ad the same (Liema, 2007). Mittelstad etrepreeurs are see to take o private busiess risk ad persoal resposibility for their actios ad assume maagemet ad owership of their busiess, followig a log-term etrepreeurial strategy orieted o the priciples of ecoomic efficiecy. There is a huge diversity amog the Mittelstad, icludig: youg start-ups; family busiesses; ethic etrepreeurs; traditioal product ad service providers; visioary creatives. 2 At the same time, craft busiesses (Hadwerk) play a importat role for the Germa ecoomy. The importace of SMEs for the ecoomic ad labour market is actively supported ad fostered through umerous targeted iitiatives to improve further this sector s framework coditios (see below). Nevertheless, it is still mediumsized ad large eterprises, rather tha micro ad small firms, that are i the focus of public ad scietific iterest, which at least partly explais the paucity of iformatio about smaller firms i the majority of available data sources (Bechma et al, 2011). I Germay, there are about 3.6 millio compaies, out of which 99.3% are SMEs (havig up to 249 workers). Germay s SME sector is see as oe of the fastest growig withi the EU (Europea Commissio, 2012). More tha 80% of the firms are micro eterprises employig less tha 10 workers. Compared with other EU coutries, i Germay there is a larger share of small (10 49 employees) ad medium-sized firms (50 249 workers) (Europea Commissio, 2011 ad 2012). Germa SMEs employ about 61% of the workforce ad have, o average, three employees more tha the average EU SME. I almost 80% of compaies with fewer tha five employees the ower ad family members work i the firm (Bechma et al, 2011). With icreasig compay size the share of occupatios requirig specific educatio or traiig decreases (from 70% i micro to 59% i large firms), while the share of occupatios requirig a uiversity degree icreases (about three times as high i large compaies tha i those with less tha five workers) (Bechma et al, 2011). This implies that the provisio of products ad services i large compaies is more capital ad kowledge-itesive tha i smaller firms. O average, gross wages i large compaies are about twice as high as those i eterprises with less tha five employees, ad cotractually agreed workig time decreases with compay size (Bechma et al, 2011). 2 http://www.bmwi.de/de/service/suche,did=511410.html 2 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay SMEs accout for about 47% of gross value added. They are resposible for 34% of realised turover ad 46% of gross ivestmet. However, productivity (sales achieved per full-time equivalet) of micro eterprises amouts to oly about 40% of that of large firms, which is attributed to cost advatages of large-scale productio, compay iteral work orgaisatio, techical equipmet ad the qualificatio structure of employees (Bechma et al, 2011). Table 1: Mai structural busiess idicators by size class, 2010 (%) Share of eterprises Share of persos employed Share of gross value added at factor costs Share of turover Share of gross ivestmet i tagible goods 0 9 80.9 18.7 11.4 6.7 14.6 10 49 15.3 22.3 16.5 11.5 15.0 50 249 3.1 19.9 18.8 16.1 16.2 SMEs 99.3 60.9 46.7 34.3 45.8 250+ 0.7 39.1 53.3 65.7 54.2 N.B. sectios B-N (without K) of the atioal classificatio of idustries (WZ 2008) Source: Statistisches Budesamt About 20% of Germa SMEs (particularly micro ad small busiesses) are active i the trade sector. About 14% (maily micro) are freelacers or provide scietific ad techical services. Costructio ad real estate compaies accout for about 10% of SMEs. Maufacturig is resposible for more tha 25% of medium-sized firms ad almost 20% of small eterprises, while at the same time accoutig for more tha 30% of large compaies. The health sector has 14% of medium-sized compaies, 10% of small oes ad 16% of large firms. Figure 1: Sector distributio amog size classes, 2010 250+ SMEs 50-249 10-49 0-9 % 0 10 20 30 40 50 60 70 80 90 100 Miig ad quarryig Eergy Costructio Trasport, storage Iformatio ad commuicatio Real estate Other busiess services Health Maufacturig Water, (liquid) waste disposal, disposal of evirometal pollutio Trade Tourism Fiacial ad isurace services Freelace, scietific ad techical services Educatio Arts, etertaimet ad leisure Other services Source: Statistisches Budesamt Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 3
Restructurig i SMEs: Germay Whe focusig o sectors, a above-average share of micro eterprises ca be foud i real estate (99%), eergy ad arts (97% each), tourism, scietific/techical services, fiacial/isurace services (about 95% each). The lowest shares of micro eterprises are i miig, maufacturig ad water/disposal (about 75% each). These idustries have the highest shares of small ad medium-sized firms. I the trasport ad educatio sectors the share of small firms is about twice the average. While betwee 2005 ad 2012 it is estimated that the umber of SMEs has bee icreasig, their share amog all busiesses remaied stable. However, while the share of micro eterprises icreased by about oe percetage poit durig this period, the share of small eterprises decreased by the same level (Source: Europea Commissio, SME performace review). Similarly, the umber of people employed i SMEs icreased, resultig i a slightly icreased employmet share betwee 2005 ad 2012 (Source: Europea Commissio, SME performace review). Bechma et al (2011) fid that the employmet growth Germay experieced i 2010 is maily due to micro eterprises ad resulted i a icreasig demad for skilled labour, which micro eterprises have difficulty i recruitig. The share of value-added ad turover geerated by SMEs rose betwee 2005 ad 2012, maily due to medium-sized compaies (Source: Europea Commissio, SME performace review). About 90% of micro firms as well as 75% of small compaies are maaged by owers, while exteral maagers are more commo i medium-sized ad large compaies. This ca be explaied by the domiat legal forms: smaller compaies are ofte sole proprietorships or parterships while larger oes are corporatios, which explicitly require a CEO or board of directors to ru the busiess. Although maager-led compaies costitute oly 10% of the firms, they employ about 40% of all workforce, resultig i a cosiderably larger average compay size (56 employees) compared to owermaaged firms (ie employees). Figure 2: Maagemet structure by size class Total 250+ 50-249 10-49 5-9 1-4 % 0 20 40 60 80 100 family maager exteral maager both Source: Bechma et al, 2011 4 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay Restructurig i SMEs as a public ad policy issue Restructurig is a promiet topic i public ad policy debate i Germay, especially sice the Germa reuificatio ad its effect o the Germa ecoomy (Dorelas, 2009). Cosequetly, restructurig is ot a ew pheomeo, but the speed of chage accelerated i the last few decades, ad ofte more comprehesive restructurigs are eeded of the orgaisatio as a whole rather tha of idividual activities (Köper ad Richter, 2012). Chage brigs about the eed to improve processes ad jobs, fosterig the developmet of the compay. However, restructurig is also liked to the risk of failure ad egative cosequeces for employees. SMEs have also traditioally bee subject to public ad policy debate due to their great importace for the Germa ecoomy. May iitiatives have bee lauched to help the sector, such as the 2011 govermet iitiative Mittelstadsiitiative der Budesregierug, idetifyig seve policy areas of major relevace for SMEs 3 : icreasig the iovatio capacity of SMEs; guarateeig the supply of skilled labour; supportig start-ups ad busiess trasfers; improvig iteratioalisatio possibilities; ehacig the fiacial basis of SMEs; fosterig reewable eergy ad eergy efficiecy; reducig bureaucracy ad expadig etrepreeurial freedom. This list shows, eve if ot explicitly metioed, restructurig i SMEs is cosidered at political level. Policymakers recogise that SMEs have specific characteristics, ad therefore specific support is eeded to foster these compaies ecoomic ad employmet potetial. The global ecoomic ad fiacial crisis has obviously affected restructurig. However, i Germay, the effects o the labour market were less severe tha aticipated. I spite of a decrease i GDP of 4.7% i 2009, the employmet level did ot decrease compared with the previous year (Bechma et al, 2011). I 2010, GDP icreased by 3.6%, resultig i a icrease of employmet by 1%, leadig to the highest employmet level sice the Germa reuificatio. Nevertheless, i a survey i mid-2010, 42% of Germa compaies reported that the crisis had affected their busiess i the two years precedig the survey (Bechma et al, 2011). More geerally, there are some topics related to SMEs restructurig that are high o the political ageda. Iovatio ad high-tech busiesses are cosidered as crucial to Germa competitiveess ad ecoomic growth (Blaeser-Befer, 2009). Cosequetly, ecouragig the growth of iovative ideas, techological developmets, iovative products ad productio processes is see as a micro ad macro ecoomic task. 3 http://www.bmwi.de/de/service/suche,did=511414.html Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 5
Restructurig i SMEs: Germay There are itesive discussios o how Germa SMEs ca be supported i their efforts to eter foreig markets ad expad their busiess there, particularly as regards multilateral regulatios ad the reductio of barriers to market etry. 4 The issue of busiess trasfer ad successio is o the political ageda, drive by the demographic chage ad the realisatio that measures are eeded to guaratee the retetio of eterprise stock ad employmet levels (KfW Bakegruppe, 2010). There is a good rage of research o these topics as they are promiet o the political ageda. However, other topics relevat to restructurig (such as mergers/acquisitios, relocatio or iteral reorgaisatios) are less frequetly or seldom covered. 4 http://www.bmwi.de/de/theme/aussewirtschaft/aussewirtschaftsfoerderug.html 6 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Relevace of differet types of restructurig for SMEs Overview Restructurig ivolves a cosiderable ad ofte selective iterferece i existig structures ad procedures ad aims at chagig curret situatios i a short time (Köper ad Richter, 2012). Restructurig processes ca be very heterogeeous ad maily cover activities to reduce costs ad icrease productivity. A survey of 20,000 employees i 2005 2006 showed that about 44% of Germa workers had bee affected by restructurig i the previous two years. It affected: 53% of workers i idustry ad public sectors; 40.5% of workers i trade; 27% of workers i the craft sector (Köper ad Richter, 2012). About 66% of the employees i compaies with more tha 1,000 workers reported restructurig, compared with about 27% i micro eterprises. Furthermore, accordig to Behres ad Kädtler (2008), the umber of restructurig activities carried out withi the last 10 years icreases with firm size. Figure 3: Number of restructurig evets withi the last 10 years by compay size 10 9 8 7 6 5 average 4 3 2 1 0 >50 50-99 100-199 200-499 500-999 1,000-1,999 <2,000 Source: Behres ad Kädtler, 2008 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 7
Restructurig i SMEs: Germay I the followig, the classificatio of the Europea Restructurig Moitor 5 is applied to aalyse the occurrece of idividual forms of restructurig i SMEs 6 : Relocatio: whe the activity stays withi the same compay, but is moved elsewhere i the same coutry. Outsourcig: whe the activity is subcotracted to aother compay i the same coutry. For this study we focus o SMEs outsourcig activities rather tha o SMEs beefitig, as suppliers, from the outsourcig activities of other compaies. Offshorig/delocalisatio: whe the activity is relocated or outsourced abroad. Bakruptcy/closure: whe a busiess is closed or a compay goes bakrupt for ecoomic reasos, or if there is the threat of bakruptcy/closure which ca be preveted. Iteral restructurig: reorgaisatio which is ot covered by the other types of restructurig defied here, for example a busiess trasfer/successio, diversificatio, chage of orgaisatioal structures. Busiess expasio: This icludes isourcig, developmet of ew products or services, addressig ew markets or cliet groups, icludig iteratioalisatio. Expasio eeds to be liked to a specific evet (for example, establishmet of ew premises, itroductio of ew products, eterig ew markets) as cotiuous growth is ot cosidered as restructurig i this study. Relocatio A survey amog Germa works coucils (Ziegler, 2008) shows that, betwee 2005 ad 2007, about 6% of compaies with 20 99 employees relocated or offshored their busiess. 7 Amog firms with 100 499 workers the share amouts to 8% while i larger eterprises it is as high as 14%. Iterestigly, the previous wave of this survey coverig 2003 2005 brought about slightly differet results. The share of relocatig/offshorig by small compaies (up to 49 employees) is slightly higher (about 11%), ad medium-sized compaies were also more more active here (17% of firms with 100 199 employees, 25% of those with 200 499 workers). Furthermore, talks about this kid of restructurig are particularly prevalet i SMEs with 50 99 employees. 5 6 7 http://www.eurofoud.europa.eu/emcc/erm/idex.htm No SME specific iformatio o mergers/acquisitios could be idetified. I the survey, o differetiatio is made betwee chage of locatio withi Germay or to a foreig coutry. However, whe asked about the target destiatio, about 70% idicated relocatio withi Germay. 8 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay Figure 4: Relocatio talks ad effected relocatios, 2003 2005 50 45 40 35 30 25 20 15 10 5 0 % 20-49 50-99 100-199 200-499 500-999 1000-1999 >2000 Total relocatio talks effected relocatio N.B. Relocatio is uderstood as takig place withi Germay or a move abroad; 90-100% of compaies with up to 99 workers, 44% of those with 100-199 workers ad 57% of those with 200-499 workers were relocatig withi Germay. Source: Ahlers et al, 2007 These higher results are i lie with a survey by the Germa statistical office (Statistsches Budesamt, 2008) fidig that, up to 2006, 13.5% of the compaies with 100 250 employees had carried out a relocatio/offshorig (compared with about 20% of the firms with 250 1,000 workers ad almost 25% of larger firms) with 8.2% plaig to do so (12% 15% for larger firms). Outsourcig Almost oe teth of Germa SMEs outsource activities previously coducted i house. This is cosiderably more prevalet i maufacturig tha i the retail or service sector. Figure 5: Outsourcig durig the last two years, by sector, 2009 % 12 10 8 6 4 2 0 Source: Creditreform, 2010 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 9
Restructurig i SMEs: Germay A 2007 survey amog Germa works coucils shows that outsourcig activities icrease with compay size (Ziegler, 2008). While about 8% of firms with less tha 100 workers outsourced work betwee 2005 ad 2007, the share amouted to 13% i compaies with 100 499 workers ad 23% i larger eterprises. Offshorig/delocalisatio I a 2004 survey, oly 0.7% of SMEs (with less tha 500 employees) plaed to offshore/delocalise parts or all of their productio to cetral ad easter Europe withi the ext two years (Hauschild et al, 2007). Geerally, compaies plaig to do so are larger maufacturig firms. Aother survey, aalysed i the report by Hauschild et al, showed that about 2.6% of SMEs (less tha 500 employees) had moved establishmets (maily sales ad service) abroad ad a further 1.2% plaed to do so i the ext two years (maily productio). I aother survey i 2005 (agai coverig firms with less tha 500 employees), about oe-fifth of firms plaed delocalisatio abroad (Hauschild et al, 2007). Figure 6: Delocalisatio of establishmets abroad by compay size class, 2004 14 % 12 10 8 6 4 2 0 1-19 20-99 100-499 500+ Total achieved plaed for the ext 2 years Source: Hauschild et al, 2007 A more recet survey (Statistisches Budesamt, 2009) cofirms that smaller compaies are less egaged i offshorig/delocalisatio tha larger eterprises. SMEs (100 249 employees) costituted 56% of the o-fiacial craft busiesses offshorig/delocatig (parts of) their busiess activities abroad, which is a cosiderably lower share tha i the total eterprise populatio. About 25% of the offshorig eterprises employed 250 499 workers ad about 10% had 1,000 or more staff. Bakruptcy/closure Almost 80% of the compaies which became isolvet i 2011 had employed up to five workers, a slight icrease o the previous year. Oly 0.7% of the isolvet firms employed more tha 100 staff. About 25% of the isolvet compaies had a turover of less tha 100,000, with aother 22% turig over 100,000 250,000. I total, about 66% of the isolvet compaies had a turover of up to 500,000. I the first half of 2012, the umber of medium-sized ad large compay isolvecies icreased compared with the same period of 2011, resultig i a decrease of the relative importace of small isolvecies (Creditreform, 2012). However, i lie with the SME domiated ecoomic structure of the Germa ecoomy, large isolvecies are still rare. There is a icreasig tedecy for youger compaies to face isolvecy. 10 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay Table 2: Compay isolvecies i 2010 2011 by employmet size (icludig ower) (%) Source: Creditreform, 2011 Share of isolvecies 2010 2011 Share of compay populatio Share of isolvecies Share of compay populatio 1 5 employees 79.0 85.1 79.6 85.2 6 10 employees 9.5 7.0 9.2 6.9 11 20 employees 5.9 3.8 5.6 3.8 21 50 employees 3.8 2.4 3.7 2.4 51 100 employees 1.1 0.9 1.2 0.9 > 100 employees 0.6 0.9 0.7 0.9 The share of compaies with up to five employees amog the isolvet firms is particularly high i the services ad trade sector (about 83%) while it its much lower i maufacturig (57.1%). More tha 25% of isolvet maufacturig compaies employ 6 20 workers, ad this sector also accouts for the highest share of larger isolvecies. Table 3: Compay isolvecies i 2011 by employmet size (icludig ower) ad sector (%) Maufacturig Costructio Trade Services 1 5 employees 57.1 75.3 83.0 82.8 6 10 employees 13.8 12.4 8.9 7.9 11 20 employees 11.0 7.6 4.5 4.6 21 50 employees 11.1 3.6 2.4 3.1 51 100 employees 4.3 0.9 0.8 1.0 > 100 employees 2.7 0.3 0.4 0.6 Source: Creditreform, 2011 Iteral restructurig Iteral restructurig is a very heterogeeous category, icludig everythig ot covered by the other types. Cosequetly, it is impossible to give a comprehesive overview about the relevace of all iteral restructurig forms i SMEs especially as, i may cases, iteral restructurig i SMEs takes place without public attetio ad hece is ot covered by official statistics or research. Below are some examples of iteral restructurig for which there are SMEspecific data for Germay. The growth of employmet durig ad after the global ecoomic ad fiacial crisis i Germay is, to a large extet, attributable to the broad spectrum of available HR policies that could be used by compaies, such as takig time off for accrued overtime or holiday etitlemets, short-time workig, or use of workig time accouts. (Bechma et al, 2011). Eve if, i this case, this ca oly be cosidered as temporary restructurig, it gives some idicatio of what HR restructurig SMEs apply i a crisis. Some 60% of Germa firms that were egatively affected by the crisis applied at least oe HR measure to cope with the situatio, ad the use of these measures icreases with compay size (about half of the micro eterprises compared to almost all larger firms). Oe reaso for this is that relevat HR measures are geerally less widespread amog SMEs tha amog large compaies, makig it easier for large firms to choose the appropriate tool i a crisis. Across all size classes, the most promiet measure was the reductio of accrued overtime. I medium-sized ad large eterprises this was followed by short-time workig, while i micro ad small compaies takig holidays was more importat. Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 11
Restructurig i SMEs: Germay Table 4: Applicatio of HR istrumets to retai employmet i compaies egatively affected by global crisis (%) Reductio of accrued overtime Holidays Short-time workig Reductio of workig time 1 4 employees 11 8 9 12 5 9 employees 19 16 14 11 10 49 employees 42 30 23 12 50 249 employees 59 32 38 12 250+ employees 69 43 50 21 Total 23 17 15 12 Source: Bechma et al, 2011 Dieckhoff et al (2000) show that iovatio, which i some cases, is related to the iteral reorgaisatio of processes ad orgaisatioal structures, is positively related to a compay s size. This would seem to be because larger compaies ted to have more uits, productio braches ad work areas, implyig a greater potetial tha smaller firms to iovate. I 2000, compaies with up to 99 employees, o average, carried out 7.53 iovatios, compared to 8.52 iovatios i firms with 100 199 staff ad 9.63 iovatios i eterprises with 200 or more workers. Lohma ad Blaeser-Befer (2011) also fid cosiderably fewer SMEs egaged i iovatio, compared with large compaies, as regards their research ad developmet, the share of ivestmet i iovatio ad its output for the firm. Table 5: Iovatio idicators i maufacturig crafts ad miig, 2007 (%) Compaies with cotiuous R & D activities i the last three years Ivestmet i iovatio as % of turover Turover realised by products lauched withi the last three years SMEs (5 500 employees) Large compaies (> 500 employees) 22 76 3.3 5.7 13 36 Source: Lohma ad Blaeser-Befer (2011) Similar results, showig that product ad process iovatio is positively related to compay size, are also foud by Bechma et al (2011). Table 6: Compaies havig iovatios i 2009, by type of iovatio ad compay size (%) Product iovatio Process iovatio 1 4 employees 33 9 5 9 employees 38 11 10 49 employees 46 15 50 249 employees 55 22 250+ employees 67 39 Total 39 12 Source: Bechma et al, 2011 12 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay Nevertheless, i their survey amog compaies makig iovatios, DIHK (2011) foud that slightly more SMEs tha large compaies (51.2% vs. 50.4%) pla to expad their iovatio activities i the ext 12 moths. Betwee 2010 ad 2014 it was estimated that 66% of the compaies (with about 20% of the affected workforce) facig a busiess trasfer have a aual turover of less tha 1 millio, ad oly 7% have a turover of more tha 5 millio (but employ almost 50% of the affected workforce) (Hauser et al, 2010). Figure 7: Share of potetial busiess trasfers ad affected employees 2010 2014 by compay size class (aual turover) % 100.0 80.0 60.0 40.0 > 50 millio 25-50 millio 10-25 millio 5-10 millio 2-5 millio 1-2 millio 0.5-1 millio <0.5 millio 20.0 0.0 compaies employees Source: Hauser et al, 2010 Busiess expasio The creatio of ew jobs is cosidered to be a cetral ecoomic ad social challege i Germay ad hece has high priority o the political ageda (Sterberg et al, 2006). However, accordig to Creditreform (2010) the majority of Germa SMEs are barely growig eve though they are characterised by log-term stable employmet umbers. Less tha 25% of the compaies (23.1%) showed a icrease i staff umbers betwee 2000 ad 2008, while there was a decrease i about 18.4%. Similarly, Bauer et al (2008) as well as Ahlers ad Ziegler (2004) fid that the widely held belief that SMEs, i particular, cotribute to employmet growth i Germay caot be empirically verified. While there is some idicatio for growth dyamics, there are also may job losses due to SMEs closig, which throws ito doubt the et employmet effect. Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 13
Restructurig i SMEs: Germay Furthermore, as cotiuous ad steady growth caot ecessarily be cosidered as restructurig, oly data for fastgrowig eterprises are aalysed here as it ca be assumed that sudde ad itesive growth is related to restructurig evets. Data, from the Global Etrepreeurship Moitor (GEM) for 2005, show that 18.9% of early-stage etrepreeurs (or 1.02% of the total adult populatio) are potetially growth itesive compaies that expect to employ 20 or more employees or to reach a certai market share withi five years (Sterberg et al, 2006). 8 These eterprises ca maily be foud i busiess-related services, wholesale ad retail trade, ad tourism. Dautzeberg et al (2012) fid that, amog the start-ups of 1995 2006, about 0.4% are gazelles. These are firms which, i their first year, employ at least 10 workers, ad the experiece a average employmet growth of more tha 20% over three years with, at the ed of this time, a employmet level which is at least 72.8% greater tha whe they started. However, the umber of fast-growig youg eterprises has bee decreasig sice 2000. About 50% of the gazelles employ 11 50 workers, ad about 33% have 51 250 employees. Figure 8: Gazelles by compay size class 0-10 11-50 51-250 251-500 >500 Source: Dautzeberg et al, 2012 Busiess growth is ot restricted to atioal markets, but ca also take place iteratioally. Exportig for the first time, as well as busiess expasio through foreig direct ivestmet or iteratioal joit vetures are all activities related to restructurig. Accordig to the Germa VAT statistics, about 11% of Germa SMEs are exporters, which shows a positive correlatio betwee firm size ad iteratioal activity. SME surveys imply, however, that the share of SMEs cocludig sales abroad is about 20% 25% as VAT statistics do ot cout exporters, compaies with low sales or sales to private 8 Although the data are about expectatios rather tha realised growth, previous surveys showed that this is a good proxy for the real compay developmet. 14 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay customers (Creditreform et al, 2007; Brutscher et al, 2012). While amog micro eterprises (with a turover of up to 2 millio) the share of exporters rages from 3% to 32%, it amouts to 45% 58% amog small firms (turover of 2 millio 10 millio) ad reaches aroud 70% for medium-sized firms (turover of 10 millio 50 millio). Betwee 2000 ad 2007, the shares have bee icreasig i all size classes, but agai more dyamically amog the larger firms withi the SME populatio. I 2008, however, the share of exporters dropped amog all SME size classes, but with a larger decrease i larger SMEs. Table 7: Share of exporters amog all compaies, by turover size (%) Amout i 2000 2001 2002 2003 2004 2005 2006 2007 2008 17,500 50,000 2.3 2.3 2.4 2.6 2.7 2.7 2.7 2.7 2.6 50,000 100,000 4.2 4.1 4.4 4.6 4.8 4.8 4.7 4.7 4.6 100,000 250,000 7.5 7.5 7.8 8.0 8.5 8.5 8.3 8.5 8.2 250,000 500,000 13.5 13.5 14.0 14.3 15.1 15.0 14.6 14.8 14.4 500,000 1 millio 20.9 21.2 21.9 22.2 23.3 23.2 22.5 22.8 22.0 1 millio 2 millio 30.5 31.0 31.3 31.7 33.3 33.1 32.2 33.1 31.8 2 millio 5 millio 43.3 43.5 44.2 44.5 46.4 46.1 45.1 45.8 44.6 5 millio 10 millio 56.5 56.8 57.4 57.5 59.7 59.3 58.9 59.1 57.5 10 millio 25 millio 65.7 65.6 66.0 67.2 68.7 68.1 67.8 68.5 67.2 25 millio 50 millio 72.4 72.4 72.7 72.7 74.8 74.4 74.2 75.3 74.8 SMEs 10.8 10.8 10.9 11.0 11.4 11.3 11.2 11.4 11.1 50 millio ad more 79.3 79.1 78.9 79.5 80.5 81.0 80.3 80.8 79.8 Total 11.0 11.0 11.1 11.2 11.6 11.5 11.4 11.6 11.3 N.B. Oly compaies above VAT thresholds Source: IfM Bo, aalysis of the VAT statistics I sprig 2012, DIHK (2012a) observed that the share of idustry compaies ivestig abroad was much lower i compaies with up to 500 employees (34%) tha i firms with 1,000 or more staff (71%), ad Brutscher et al (2012) reported that 5% of Germa SMEs had direct ivestmet abroad. However, foreig direct ivestmet by Germa idustry is slowig dow, ad this is more proouced i larger compaies. Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 15
Drivers of restructurig The mai reasos for restructurig are to decrease costs, adapt busiess plaig, improve fiacial maagemet ad icrease turover or growth (Köper ad Richter, 2012). Traditioally, globalisatio is a importat driver for restructurig. While it is ofte related to activities of large compaies, it also affects SMEs (Creditreform et al, 2007). The icreasig iterlikig of atioal markets ot oly gives Germa SMEs ew opportuities but also ew competitio. The opeig of markets i cetral ad easter Europe provides additioal target markets ad cheaper locatios that are relatively close, hece drivig busiess expasio ad offshorig/delocalisatio. Competitive pressure, from SME cliets also watig to order their goods from cheaper foreig suppliers, forces Germa SMEs to cosider iteral restructurig. Germa SMEs actig as suppliers for larger compaies are icreasigly forced to follow their cliets that move abroad. Chages i iteratioal value-chais provide opportuities for SMEs, allowig them to specialise ad focus o core competeces (iteral restructurig, busiess expasio), accompaied by outsourcig of cost-itesive processes. Globalisatio is also see to have several other effects o Germa SMEs. It drives them to outsource IT services (Aviway Cosultats, 2008). They have difficulty, due to limited HR resources, i beig available at all hours to deal with issues arisig abroad. I sparsely populated areas it is difficult to fid ad retai skilled labour. New applicatios ad techologies must be quickly implemeted. Cost pressure implies the use of all ratioalisatio potetials. The global ecoomic ad fiacial crisis was certaily a importat driver for restructurig i Germa SMEs. Iterestigly, however, while a mid-2010 survey showed that compaies of all sizes had bee affected by the recessio, medium-sized ad large firms seem to have bee affected more severely. This ca be attributed to their higher depedecy o iteratioal trade. About 40% of micro eterprises, but about 50% of the medium-sized ad large oes, felt the effects of the crisis durig the two years precedig the survey; however ot all of these effects were egative. Nevertheless, larger firms ted to recover quicker from difficulties. I 2010, about 85% of the medium-sized ad large firms that had bee affected by the crisis reported recovery, while oly 70% of micro eterprises ad 75% of small firms reported recovery. The wish to peetrate or to expad markets, to be closer to the cliets or suppliers, as well as high labour costs i Germay are importat drivers for iteratioalisatio of Germa SMEs (Hauschild et al, 2007). However, while i larger compaies the cost motive is the greatest impetus for iteratioalisatio, for smaller firms it is more likely to be market diversificatio (peetratig ew markets or retaiig foreig markets). Other relevat factors are persoal reasos ad radom cotacts, lower taxes, ad less bureaucracy ad regulatio abroad. Higher productivity ad better research ad developmet kow-how abroad are of less importace. 16 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay Figure 9: Motives for iteratioal activities, autum 2010 % 80 70 60 50 40 30 20 10 0 Source: IfM Bo/BDI, 2010 Similarly, cost motives (lower taxes, wages ad admiistrative costs) are the mai reasos for the delocalisatio of Germa SMEs (with less tha 500 employees). I cotrast to iteratioalisatio, however, the peetratio of ew markets, beig closer to cliets ad a better competitive situatio are of less importace to those compaies that already have delocalised abroad tha for those plaig to do so. Figure 10: Reasos for delocalisatio(compaies with less tha 500 employees) peetratio of ew markets closer to cliets support for the establishmet of foreig subsidiaries better R&D kowledge abroad better competitive situatio lower regulatio/bureaucracy lower wages lower taxes % 0 10 20 30 40 50 60 70 80 90 100 Source: Hauschild et al, 2007 delocalisatio plaed for the ext 2 years delocalisatio achieved Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 17
Restructurig i SMEs: Germay A similar relevace of drivers is foud i Statistisches Budesamt (2008), coverig relocatio ad offshorig/delocalisatio. However, a comparatively lower relevace of taxatio ad a higher relevace of access to kowledge ad customers is observed. This could be explaied by the fact that movig withi a coutry might ot mea such a great differece i taxatio, ad SMEs beig more mobile withi their coutry tha across coutries to follow their cliets ad resources. Figure 11: Motives for relocatio/offshorig (eterprises with 100 249 employees) lower regulatio follow cliets or competitors access to ew kowledge access to ew markets product developmet realise a ew busiess model strategic requiremets other costs tax icetives wage costs % 0 20 40 60 80 100 very importat importat less importat ot importat do't kow Source: Statistisches Budesamt, 2008 18 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Distictive characteristics of restructurig i SMEs Aticipatio, plaig ad preparatio of restructurig evets The literature review foud almost o iformatio about how SMEs pla restructurig. This could lead to the assumptio that restructurig is geerally carried out i a uplaed, reactive maer as SME ower-maagers are so itesively ivolved i daily busiess activities that they have little time for aticipatig restructurig. However, this kowledge gap is importat to address i order to uderstad better how SMEs pla restructurig, ad to draw up policies to assist i this process. The oly iformatio o aticipatio, plaig ad preparatio of restructurig i SMEs that could be foud i the aalysed literature deals with busiess trasfers. DIHK (2012b) idetifies a lack of awareess of the ecessity of timely plaig. It is observed that may etrepreeurs delay dealig with the issue, resultig i more limited optios. I 2010, particularly, it was observed that plaig for successio was of mior priority for etrepreeurs, as the effects of the fiacial crisis meat the etrepreeurs full attetio was devoted to daily busiess activities. Accordig to the available data, about 50% of ageig etrepreeurs are ot prepared well i time for their trasfer. Some 80% start preparig the trasfer less tha two years before the iteded trasfer date, resultig i the dager that decisios ad actios have to be speeded up, icreasig the likelihood of mistakes i tax or legal issues. Reasos for this iclude: they are ot emotioally prepared to leave their busiess; they wat to wait to improve their retiremet icome; about 40% do ot fid a suitable successor; about the same share ask for a too high sellig price. Moog et al (2012) fid that 40% of those etrepreeurs that pla a busiess trasfer foresee the trasfer ot takig place for at least 11 years. About 26% pla the trasfer to take place i 6 10 years ad about 22% i 3 5 years. About 10% wat to trasfer withi oe or two years. Maagig restructurig There is also o previous research o the maagemet of restructurig i SMEs; what processes ad steps the firm takes to hadle the evet. However there are examples of this i the case studies coducted for this project (see http://www.eurofoud.europa.eu/emcc/labourmarket/restructurigsme.htm). Nevertheless, available studies ad data do give details about how restructurig affects certai areas of busiess areas ad what measures are used. I the field of iovatio, DIHK (2011) fids that amog SMEs oly 24% have comprehesive ad systematic iovatio maagemet (compared to 44% of large firms), 44% partly follow iovatio maagemet approaches ad 29% do othig (10% of large firms). Lohma ad Blaeser-Befer (2011) fid improvemet potetial particularly i the areas of the iovatio process, creatig ideas ad the lauch of the iovatio. While i SMEs equity ad subsidies, as well as credits, are of greater importace i fiacig iovatio compared with large eterprises, the latter importatly rely o their cash flow to carry out iovatio (DIHK, 2011). Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 19
Restructurig i SMEs: Germay Figure 12: Ivestmet i iovatio by size class 80 % 70 60 50 40 30 20 10 0 equity cash flow subsidies credits <250 >250 N.B. Two aswers possible Source: DIHK, 2011 Research shows that, due to the heterogeeity of the SME sector, SMEs have various ways of carryig out iteratioalisatio. They iclude: exports; the shiftig of productio plats to cheaper foreig locatios ad the targeted establishmet; expasio of foreig subsidiaries close to large cliets (Hauschild et al, 2007). Exportig is very commo as, i may cases, it is the first step towards gaiig experiece i foreig trade. Amog those Germa SMEs that had iteratioal busiess relatioships i autum 2010, about 85% were exporters, 30% had cooperatios ad about 15% 20% had subsidiaries. Joit vetures ad other forms of capital relatioships, as well as licese or frachise agreemets, were less promiet. Figure 13: Iteratioal relatioships, autum 2010 % 90 80 70 60 50 40 30 20 10 0 Source: IfM Bo/BDI, 2010 20 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay I their survey of Germa SMEs with at least 30 employees, Brutscher et al (2012) foud that, amog active exporters, 97% use direct exports (with half of them sellig to large foreig compaies, 25% sellig over the phoe ad 10% beig active i e-commerce) ad 32% coduct idirect exports. There is a statistically sigificat correlatio betwee compay size ad the existece of a departmet specifically dealig with foreig trade issues. While about 20% 25% of small eterprises had established such departmets i 2006, about 50% of the medium-sized had doe so. Amog large eterprises, the share was 66% or higher. Figure 14: Existece of a foreig sales departmet by compay size, 2006 500+ 250-499 50-249 10-49 <10 % 0 20 40 60 80 100 yes iteded o Source: Hauser, 2006 As regards target markets, various studies show that Germa SMEs focus their foreig trade o well developed, geographically close ad culturally comparable markets i the EU eighbourig coutries (Hauschild et al, 2007; Brutscher et al, 2012). Cosequetly, Frace, the Netherlads, Austria, Italy ad Switzerlad are the preferred target coutries. Cetral ad easter Europea coutries are also targeted. Amog those SMEs exportig to wester Europe, almost 50% are servig up to three markets while 25% deal with four to six coutries ad 25% deal with more tha six coutries, each (Brutscher et al, 2012). There is a correlatio betwee compay size ad the umber of differet markets served, which is explaied by the availability of fiacial ad HR resources ad the related opportuities of becomig more efficiet, specialisig ad beefitig from cost advatages. Amog those Germa SMEs with direct ivestmet abroad, almost 80% have established a daughter compay, about 33% set up a subsidiary ad 25% are egaged i joit vetures (Brutscher et al, 2012). While the establishmet of daughter compaies ad subsidiaries icreases with size class, joit vetures are of almost equal relevace for all SMEs. As with the exports, wester Europe is the mai target for SMEs direct ivestmets, followed by cetral ad easter Europe. Direct ivestors are foud to be more ofte active i those regios i which they have already established export relatioships. SMEs outsourcig activities are maily targeted at Germa parters (about 80%). Amog maufacturig compaies, about 25% use Europea subcotractors. This also occurs i wholesale trade with outsourcig withi Europe at about 20%, but outsourcig beyod Europe at about 14%. Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 21
Restructurig i SMEs: Germay Figure 15: Target market for SMEs outsourcig activities durig the last two years, by sector, 2009 100 90 80 70 60 50 40 30 20 10 0 % maufacturig costructio wholesale trade retail trade services SMEs total withi Germay withi Europe beyod Europe Source: Creditreform, 2010 About 66% of SMEs relocatig/offshorig their activities up to 2006 were lookig for a ew locatio for support activities, maily marketig/sales ad logistics, but also egieerig/techical activities ad admiistratio/ maagemet. More tha 50% of SMEs relocated/offshored core activities. While more SMEs tha larger firms ted to relocate/offshore support activities, it is the other way roud as regards core activities. Table 8: Relocatio/Offshorig by busiess activity ad compay size class (%) Number of staff 100 249 250 499 500 999 1000+ Core activities 58.1 64.0 58.4 59.8 Support activities (total) 67.7 64.7 72.4 77.5 of which: Logistics 25.6 24.4 22.0 20.6 Marketig, sales 30.9 27.8 23.1 23.8 ICT 9.5 10.1 13.1 18.0 Admiistratio, maagemet 17.8 15.7 16.6 22.5 Egieerig, techical services 19.7 19.4 18.0 26.7 Research ad developmet 12.2 10.2 16.6 17.0 Source: Statistisches Budesamt, 2008 I 69% of the busiess trasfers carried out from mid-2000 to mid-2005 amog Germa compaies (more tha 90% of them relatig to SMEs) the successor came from the etrepreeur s family (Creditreform et al, 2008). The report also showed that: slightly over 11% of successors were previous employees; 12% took over the firm i the form of a maagemet buy-out; i 6% of the cases the firm was sold to aother busiess. 22 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Restructurig i SMEs: Germay A more recet survey (2008/09) shows a slightly differet picture: about 85% of successors are family members (66% sos, 20% daughters, 16% several childre); 7% are previous employees; 6% are exteral trasfers (Moog et al, 2012). I 40% of the exteral trasfers the compay was sold to aother firm, i more tha 33% to a fried or acquaitace ad i more tha 25% to oe or several exteral persos. I about 44% of the trasfers owership ad cotrol were trasferred at the same time, while i the same umber the maagemet was trasferred before the owership (Moog et al, 2012). I oly 12% of the cases was owership trasferred before the maagemet. Ivolved actors Quite aturally, because of their cetral role i the compay, owers-maagers play a key role i SMEs restructurig. However, as restructurig i most cases is a importat ad difficult edeavour for the compay ad the etrepreeur who ofte lacks previous experiece i this area it ca be assumed that additioal actors are ivolved to esure a successful restructurig. The case studies coducted i this project (see http://www.eurofoud.europa.eu/emcc/ labourmarket/restructurigsme.htm), for example, pipoit the importace of: persoal support from family ad frieds; professioal support from busiess cosultats ad employers orgaisatios; fiacial support from baks ad ivestors. However, more comprehesive iformatio is ot available from previous research, so that oly very fragmeted fidigs ca be preseted. Germay is characterised by a icreasig market for iterim maagers, who help i restructurig (whether i a crisis, or if additioal maagemet capacity is eeded i growth phases). A 2005 survey of Germa iterim maagers (Heuse, 2006) shows, however, that these experts are maily cosulted by large firms. I 2001, compaies with less tha 50 employees comprised 25% of the cliets of iterim maagers, while i 2005 the share dropped to 19%. I Germay, worker represetatio is based o a dual system, that is trade uios egagemet i collective bargaiig at sectoral level ad elected works coucils egagemet i discussios at plat, compay or group level (Dorelas, 2009). The latter icludes the itroductio, rejectio or acceptace ad maagemet of restructurig, ad is based o extesive rights to iformatio ad cosultatio, up to codetermiatio (particularly i social issues). However, due to the legal framework ad the tedecy of larger firms to be more istitutioalised, workers represetatives ca be foud more ofte i larger tha i smaller compaies. About 85% of large firms have works coucils, compared to 4% of the compaies with five to ie employees (Bechma et al, 2011). Micro eterprises with works coucils ted ot to be idepedet, but belog to a compay group or holdig. This also implies that works coucils i large compaies have a more promiet role i restructurig tha they do i smaller compaies. Behres ad Kädtler (2008) show that i compaies with 5 99 employees works coucils are worse iformed ad less cosidered i restructurig tha those i larger firms. Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 23
Restructurig i SMEs: Germay Wallau ad Schlömer (2010) metio that, i the framework of family exteral busiess trasfers (which are about half of the trasfer cases), there is extesive use of third parties (such as busiess cosultats, chambers of commerce, busiess parters, olie bourses or frieds) as well as advertisig. Potetial buyers maily take advatage of chambers of commerce ad olie bourses while sellers maily approach busiess cosultats. Figure 16: Exteral actors approached i family exteral busiess trasfers % 80 70 60 50 40 30 20 10 0 sellers pote al buyers Source: Wallau ad Schlömer, 2010 24 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013
Mai challeges ad costraits facig SMEs i restructurig Previous research o most types of restructurig does ot ivestigate factors that hider SMEs from restructurig successfully. Some hidraces to SMEs growth, iovatio ad iteratioalisatio are preseted below, eve if ot all growth, iovatio ad iteratioalisatio that take place i SMEs ca be cosidered as restructurig. Nevertheless, the challeges ad costraits idetified i these cases are assumed to apply just as much (if ot more) to SMEs restructurig. The mai costraits o growth i Germa SMEs, ad for ay substatial busiess expasio that ca be cosidered restructurig, are: high competitive pressure; restricted fiace; lack of skilled labour; labour law. While fiacial issues are a bigger challege for the smallest compaies, all these aspects are metioed more ofte by compaies with up to 50 employees. Figure 17: Mai growth costraits for SMEs, by size class % 70 60 50 40 30 20 10 0 high competitive pressure restrictive fiace lack of skilled labour labour law techological costraits SMEs up to 20 employees up to 50 employees more tha 50 employees Source: Creditreform 2010 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013 25
Restructurig i SMEs: Germay I their survey of youg, quickly growig compaies, Dautzeberg et al (2012) idetify the lack of skilled labour as the mai barrier to growth, followed by the legal framework ad bureaucracy. Furthermore, a lack of fiace from baks ad difficulty i accessig credit are metioed. As regards the developmet of iovatio, Goryia-Pfeffer (2009) summarises several empirical research studies fidigs showig that compay iteral factors are importat challeges for SMEs. This relates to: huma 9 ad fiacial resource limitatios (particularly i the phase of trasitio from prototype to serial productio); difficulties i assessig the market potetial ad forecastig chagig market coditios; marketig the iovatio. Similarly, Blaeser-Befer (2009) says major costraits to iovatio are: admiistrative burde; lack of skilled labour; access to fiace. Creditreform et al (2003 ad 2005) fid the expected low retur (high costs vs. log duratio util profit ca be achieved with the iovatio) as the major costrait o SMEs carryig out iovatio projects. Other importat hiderig factors are the fear of imitatio (caused by less dramatic iovatio ad less use of patets), shortage of qualified staff ad access to exteral kow-how ad fiacial resources. A lack of willigess by staff ad maagemet to explore ew possibilities is also metioed, which is more importat for SMEs tha for large firms. I Creditreform et al (2005) the perceptio that o iovatios are eeded because of previous iovatios ad the curret market developmets are pipoited as hiderig factors for iovative activities. However, these issues are metioed more ofte by large firms tha by SMEs (with the exceptio of maufacturig crafts as regards market developmet). I autum 2010, those Germa SMEs ot iteratioally active metioed fidig a reliable parter as the mai hiderig factor, followed by laguage/cultural barriers, competitio ad legal/political framework coditios. Also the difficulties i gatherig reliable market iformatio ad the higher price level i Germay compared to the target market are importat bottleecks. I cotrast, staff related issues are of less relevace. 9 I DIHK (2011) it is foud that while the lack of skilled labour/researcher hampers iovatio actitivies of 55% of SMEs, this is the case for 66% of large compaies. 26 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2013