New research reveals 6% of Germans have launched or plan to launch a business
A new survey (1) of 12,800 German adults from across the country, reveals that 5.6% – around 3.87 million people – plan to launch their own businesses because of the impact the coronavirus crisis has had on their lives. The findings reveal that 324,800 Germans have already launched a business since the crisis began.
The findings are from MBH Corporation plc, a diversified investment holding company listed on the Frankfurt and Dusseldorf Stock Exchanges, that acquires successful, well established small to medium sized enterprises across multiple geographies and sectors.
In terms of why Germans are looking to launch their own businesses, one in four (25%) say it’s because they have had to take a pay cut at work, but 22% say it is because the crisis has made them change how they view their lives. Some 21% say they have spotted a gap in the market for the type of busines they want to launch, and 20% say it’s because they have been made redundant and can’t find another job. 12% say it’s due to the fact they keep on getting furloughed.
When it comes to the type of businesses these entrepreneurs plan to start up, 20% say they will launch retail focused enterprises, followed by 15% who say it will be in the manufacturing and engineering sectors. Just over one in ten (11%) intend to launch hospitality businesses such as restaurants or coffee shops, and the same number (11%) intend to launch businesses in the financial services industry.
Around 58% of those planning to launch their own businesses expect to do this in the next 12 months, and 35% will do this on their own. However, many intend to set up family run businesses, with 30% planning to do this with their spouses/partners, 6% with their parents, and 3% with a sibling.
Callum Laing, CEO of MBH Corporation plc: “The Covid-19 crisis has had a huge impact on people’s working lives, but our research shows it has bought out the entrepreneurial spirit across the country. Many are planning to launch their own businesses because of the financial implications the crisis has had on them, but others are doing so because the crisis has made them view life differently, or because they have seen a gap in the market.”
MBH Corporation recently published its half year results for 2020, which revealed revenue growth of 31% to GBP27.4m (1H 2019: GBP21.0m) and a stable net profit of GBP0.7m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13% to GBP1.5 m (1H 2019: GBP1.3m).
MBH currently has 21 very successful and profitable small businesses in its portfolio and, as part of a continued growth drive, is looking to acquire more companies of a similar nature.
MBH targets well-established companies that are predominantly debt free, delivering around GBP0.5m-GBP10m EBITDA and are generally still run by their founders.
By leveraging its unique Agglomeration™ strategy, MBH can create substantial shareholder value through the consistent and accretive acquisition of excellent companies. With Agglomeration™, profitable companies convert their private shares into public shares or bonds in MBH Corporation plc in a perpetual earn-in model. Company owners are then incentivised to accelerate their growth trajectory using the resources of the plc including expertise, skill transfer of best-in-class practices, cross-selling to other group companies and where appropriate, zero cost funding for new growth projects.
Each group company retains its autonomy and follows appropriate corporate and financial governance. Business owners are also incentivised financially to enhance shareholder value through a share bonus scheme aligning their interests with public shareholders.
1. MBH Corporation PLC commissioned the research company Pureprofile to survey 12,800 German adults across the country. The survey was conducted online at the end of October 2020.