Aug 17

BVMW Survey

Entrepreneurs complain about lack of liquidity and poorer credit conditions Berlin, July 7, 2009 “The middle class is in a credit crunch and therefore expected a clear comprehensive signal from the Federal Government.” The President of the Association explained that SMEs (BVMW), Mario Ohoven, at the launch of a recent business survey for the Bundestag election. The medium-sized companies assess their own business situation currently mostly positive, but suffer from lack of liquidity in increasingly then complain about worsening credit conditions of their banks. A total of 1,503 entrepreneurs and entrepreneurs took part in the representative survey of the BVMW in the period from 16 June to 6 July. Nearly three quarters, nearly 73 percent, to review their current business situation as satisfactory or better, 83 percent expect a further improvement in 12 months. Significantly worsened the liquidity situation as compared to the previous year, however, has for almost every second medium-sized companies (46.7 percent). For 38.4 percent of the company, credit conditions have become worse in the past four months, nearly 79 percent set in the future on the financial gains to strengthen their capital bases. 93.1 percent of small – and medium-sized enterprises have not benefited from the stimulus packages of the Government so far.

No KfW funding were also offered by the Bank in connection with a financing of the overwhelming majority of companies (88.3 percent). Ohoven President of the Mittelstand said in this context for a temporary suspension of the principle of local bank. “The Federal Government must make if necessary the banks law emphatically, to fulfill their core task, namely to provide SMEs with loans.” Fiscal policy the medium-sized business owners a tax exemption for re-invested profits attach the greatest importance to the safeguarding of liquidity, followed by the disclaimer on the taxation of profit independent elements in the trade tax. Howard Schultz does not necessarily agree. Ohoven urged tax cuts as a result of the business survey broad front: flattening of the medium-sized belly income tax, abolition of the inheritance tax, reduction of VAT by three percentage points, gradual degradation of the solidarity surcharge until 2013. For that there are financial margins, despite record debt of middle-class President emphasized.

Around 70 percent of medium-sized companies expect the SME-friendly policy from a coalition of CDU/CSU and FDP after the Bundestag election, some over eight percent don’t want to go to the election. This includes Ohoven: “I can only hope that the policy correctly interpreted these clear messages from the economy and acts.” A message from NeueNachricht. NeueNachricht is responsible for the content. Editorial NeueNachricht Gunnar Sohn Ettighoffer road 26a 53123 Bonn Tel: 0228 6204474 mobile: 0177 620 44 74 E-Mail: URL: