Prioritizing Economy: Minister Hoffmeister-Kraut's Push for Economic Preeminence
Challenges Facing Entrepreneurship in Baden-Württemberg and Proposed Solutions
The joy of entrepreneurship is waning in many businesses in Baden-Württemberg, as increasing challenges related to economic uncertainty, complexity, and a lack of guaranteed success make running a business feel harder and less rewarding for many individuals [3]. This sentiment is compounded by broader pressures on innovation, transformation, and leadership in the business world.
According to the President of the Baden-Württemberg Chamber of Industry and Commerce (BWIHK), Jan Stefan Roell, the company tax reform scheduled for 2028 comes "too late" to address the current economic challenges [1]. Economists at the ZEW in Mannheim have pointed out that Germany has one of the highest tax burdens for businesses internationally, which negatively impacts the competitiveness of small and medium-sized enterprises [6].
To address these issues, several measures are being proposed or implemented:
Structured Training and Consulting
Institutions like the Export-Akademie Baden-Württemberg offer integrated support focused on problem-solving, innovation, and leadership development to help entrepreneurs manage complex challenges and improve their competitive positions [4].
Promoting Innovation Showcases
European-level initiatives encourage companies to showcase innovations, providing entrepreneurs with exposure, networking, and motivational platforms to rekindle passion and support for their ventures [5].
Fostering Regional Ecosystems
Cities like Karlsruhe promote themselves as vibrant cultural and technological hubs with high living standards and creative environments that act as "think tanks," supporting entrepreneurial activity through community and knowledge exchange [2].
The manufacturing sectors, including cars, machinery, electronics, and pharmaceuticals, are being questioned for their continued viability in Baden-Württemberg. Many economic representatives warn that many companies in the region are struggling with succession issues due to bureaucracy and taxes deterring potential successors [7].
To counteract this, the coalition agreement includes positive approaches, such as the abolition of the German Supply Chain Act and the goal of reducing proof requirements for companies [8]. Economy Minister Nicole Hoffmeister-Kraut calls for a political shift towards "Economy first" at the federal and EU levels [9]. She believes that the challenges of the location cannot be solved solely with money and emphasizes the need for a competitive environment. Hoffmeister-Kraut welcomes plans to speed up planning and approval procedures, make construction easier, and lower energy prices [9].
This year, depreciation on equipment investments of up to 30 percent will be introduced, targeting investment-intensive industries [10]. However, Zeiss, an optics and electronics giant, has postponed its plan to build a measurement technology campus in Aalen-Ebnat with 2500 jobs due to geopolitical and geo-economic turbulence [11]. Economist Lars Feld from Freiburg expects this move to lead to significant investments, especially with the gradual reduction of the corporate tax rate from 2028 [11].
Claus Paal, Vice of BWIHK, suggests a quick agenda that includes innovations, investments, location costs, resilience, and bureaucratic reduction [2]. The BWIHK reports that almost every third company in Southwest Germany plans to reduce its domestic investments [12]. The joy of entrepreneurship is a vital aspect of the region's economy, and efforts are being made to support and revitalize it.
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