Germany’s Mid Sized Companies content. Are they?

Status quo makes entrepreneuers happy, future is heralded positively. Others see it a bit more dismal.

FTD didn’t quite catch my interest today. But it did yesterday and the day before that so I am now picking on one of this week’s topics in this blog: Mid sized companies.

Good old “Mittelstand” was considered by FTD (30-11, 1-12-2010) to be worthy a 2-day special.

In this blog post by olexa5 (thanks btw for post) we learned about history and importance of mid sized companies in Germany.

What did happen to mid sized companies (up to 500 employees) during the crisis? Some state to have learned about their weaknesses, they had “time to rethink things” because nothing else to do when order books were empty. This has changed to the better according to FTD. Lots of orders and a thumbs-up outlook are used to stock up equity, repay debt. Especially the latter is somehow missing in financial planning by the government. Economic up-turns are not used to fill Germany’s awfully huge debt-holes.

However, there are dismal voices which don’t see the Mittelstand’s condition as good as FTD. Bravenewlook being one of them, commenting on olexa5’s article that growth and debt are where they are not supposed to be: somewhere very unpleasant.

Same side is taken by Deaf News Magazin. They claim that money at risk for creditors is utterly extreme if it comes to Mittelstand operations. Fear over unsettled debt makes creditors to tighten rules on lending. This will be bad for some companies.

So who is to believe now? After the dark past of an ugly crisis I would love to hear some good news, deliverd by FTD in this case. But there is a backside too. All in all I am optimistic. Guess that’s my nature. (Sorry, no picture today. Maybe you guys can pick one for me.)

update:

Thanks to stuerzele for directing me to this wonderful picture. It quite mirrows the dilemma here. Mid Sized Companys Top or Flop?

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rudi2020

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One Response to Germany’s Mid Sized Companies content. Are they?

  1. bravenewloock says:

    I just hope that everybody stays as positive as you, increased spending will then indeed lead to a positive future! To follow up the money at risk for creditors issue: When searching for some indicators of the general state of “Mittelstand”, I came across this study by the credit information agency “Creditreform”. According to its section about credit at risk, the main factor constricting lending to the “Mittelstand” is not the finanial state of the company, but the overall payment behaviour: Even “rich” companies often delay their payments beyond contractual period of payment, only 46,9% of ompanies have a “good” payment morale! That seems ro be a certain case of bringing it onto yourself!

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