The business climate for self-employed individuals and small businesses has deteriorated significantly in September, according to data released by the Ifo Institute in Munich. The business climate index fell to -19.8 points, a sharp decrease from -13.8 points in August.
This decline reflects a growing sense of headwinds experienced by many self-employed, with concerns rising about the potential for a swift economic recovery. A notable proportion of solo entrepreneurs and small businesses continue to struggle with assessing their future business trajectory. The survey indicated that 30.4% of respondents find it difficult to evaluate their prospects, a slight increase from 30.1% in August. This level of uncertainty remains elevated compared to the broader economy, where the figure stood at 22.3% in September.
“An increasing number of self-employed individuals face an uncertain future” explained Katrin Demmelhuber, an Ifo Institute expert. The prevailing climate of uncertainty is compounded by a reported increase in financing challenges. The proportion of self-employed individuals facing difficulties accessing credit has risen substantially, from 34.9% to 45.1% compared to the previous quarter. This contrasts with a decrease in the same metric within the overall economy, where the figure dropped from 31.4% to 29.1%.
The proportion of respondents currently engaged in credit negotiations also rose among the self-employed, reaching 10.8% compared to 9.6% previously. This remains considerably lower than the 25.5% observed in the general economy.
