A sustained lack of orders continues to plague the self-employed, with almost every second respondent (45.7 percent) reporting a shortage of business. This finding comes from a recent Ifo survey. Katrin Demmelhuber, an Ifo researcher, noted that both corporate and private customers are holding back their spending, a situation that disproportionately impacts the self-employed. She added that a palpable upswing in business activity remains out of reach.
Furthermore, nearly one in five (19.5 percent) of sole traders and small operations feel that their very economic existence is threatened. This high figure significantly exceeds the rate observed in the overall economy (6.7 percent). These challenges are reflected in the general business climate: the “Jimdo-Ifo Business Climate Index” saw only a minor increase in October, moving from -18.8 points to -18.6 points. Although the self-employed reported less negativity regarding their current operations, expectations were noticeably dampened. Demmelhuber commented that the economic recovery has yet to reach the self-employed sector on a wide scale.
The situation remains strained for solo traders and small businesses, particularly in retail and many service industries. However, there are positive signs in specific fields: the business climate in management consulting-a sector that has seen improvement for the first time in two years-and among IT service providers has also shown signs of recovering.
