Still Dreaming of a Big Trust’s Job?
If you are only looking for an employment with illustrious company names, you might miss your chance. The hidden champions of the German economy are the family enterprises as a recent study proved again.
Written by Jens Kügler
The big trust brands offer not only the most popular products, but also the most sought-after jobs. It’s the concerns that have the greatest attraction on staff––be it Apple or Google, Siemens or Mercedes. And let’s be honest: Who does not like to see a Mercedes star in his resume! However, these giants continuously lose market value: YTD the German stock index DAX has been decreased by 20%. Yesterday for the first time since 2014 it crashed below 9,000 points which journalists called a “psychologically important” level.
All the more it is worth for every applicant to take a close look at the real drivers of the German economy: the middle class. In this country there are thousands of world market leaders in niche products. Right at the beginning of the year a study was published focusing on family-owned companies. The survey was made by the Bundesverband der Deutschen Industrie (BDI, “Federation of German Industry”) together with Deutsche Bank and the Institut für Mittelstandsforschung (IFM, “Institute for SME Research”) at Bonn. The online portal of the econony magazine Wirtschaftswoche dealt with the results. And one of these study results revealed that the increase in employees at family businesses significantly exceeds the overall economy.
The year to which the study refers is 2013. In that year the growth rate of new jobs in the 4,500 largest German family firms was twice as high as on the average of all companies. The difference in numbers: 1.3 percent increase in the overall average––and three percent at the family businesses. The 4,500 largest family firms are only 0.1 percent of all companies in Germany but they employ 17 percent of all employees subject to social insurance contributions and generate 20 percent of all national revenues.
But do the trusts not offer the safer jobs––as if to say “big brands, great confidence, best prospects”? No. In their survey, the market researchers of BDI, IfM and Deutsche Bank also identified an extremely healthy financial base of SMEs. They reached an average equity ratio of 37 percent––a peak value. In contrast, all companies that achieved more than 50 million euros in annual sales had only about 31 percent equity ratio on average. That means the family economies work more profitable than the average.
It’s your fault if you still only look at the automakers and forget about the automotive suppliers. The family businesses are the engines of the economy. They create the most, the best and obviously also the most solid jobs.