Upon the boss's retirement, multiple businesses face imminent shutdown - Upon a boss's retirement, numerous enterprises are poised to close by year's end
In the heart of Germany, the region of Thuringia is grappling with a significant challenge. Thousands of businesses, mostly owned by individuals aged 55 and above, are at risk of closure as their founders retire, according to the Thuringian Craftsmen's Association.
The Association, based in Erfurt, has commissioned a study to investigate the situation in various regions and trades. The managing director of the Association, Thomas Malcherek, has stated that about 11,000 to 12,000 craft businesses in Thuringia are owned by individuals of retirement age.
Malcherek appeals to politics to reduce bureaucratic hurdles that discourage craftsmen. He notes that in some trades, more than 60% of business owners are over 60 years old. This situation could lead to a significant decrease in the number of businesses, with serious consequences such as supply gaps, longer waiting times for craftsmen, less economic power, job losses, and potential harm to social cohesion, particularly in rural regions.
However, a search for the Craftsmen's Association's statement about the succession crisis in Thuringian craft businesses did not yield any results. If a specific article, quote, or link to the statement becomes available, the concerns and recommended solutions will be summarized and cited.
In the meantime, evidence-based strategies for addressing succession crises in regional craft/small-business sectors can be considered. These include promoting early succession planning, supporting training and apprenticeships, improving financing and incentives, facilitating business transfer services, encouraging cooperative and shared-ownership models, strengthening advisory and mentoring programs, streamlining licensing and providing digitalization support, attracting and retaining skilled migrants, promoting the sector’s attractiveness, and monitoring and evaluating the situation.
One example of a successful succession in Thuringia is Braun & Höfler GmbH in Elxleben. The managing director, Stephan Wreden, took over the company in 2024. Wreden, along with his partner Tobias Theis, reported a good order situation and waiting lists of customers extending into the following year. The founders of the company were former employees before the takeover.
The Thuringian Craftsmen's Association considers Braun & Höfler GmbH in Elxleben as a model of successful succession. Malcherek hopes for young people with great economic opportunities through business takeovers, but notes that the process often takes years to prepare.
The three Thuringian Craftsmen's Chambers are offering consulting services and business exchanges to combat the lack of successors. The Association encourages politicians to take action to address this issue and secure the future of Thuringia's craft businesses.
- EC countries might stand to benefit from knowledge transfer and collaboration, as strategies to address succession crises in regional craft/small-business sectors involve vocational training, apprenticeships, and improved financing and incentives, all of which are integral to fostering young entrepreneurs.
- Small-business owners in EC countries could be motivated to invest in their careers and the growth of their businesses with the implementation of funding opportunities for vocational training, as doing so equips the next generation with the necessary skills to take over the reins from retiring business owners, securing the future of businesses and boosting overall employment in the regions.
