KfW SME Panel 2025 (KfW)

Summary

• Total turnover of German SMEs grew moderately by 2% in 2024 to EUR 5,179 billion, while average turnover growth per enterprise stood at 1.2%.p.3
• The SME workforce reached a new record high of 33.01 million workers after adding 207,000 employees in 2024.p.3
• Average profit margins across the SME sector remained stable at 7.0%, and average equity ratios increased slightly to 30.7%.p.3
• SMEs invested EUR 221 billion in new plant, equipment, and buildings in 2024, with 39% of enterprises completing investment projects.p.4
• SMEs borrowed EUR 81 billion in bank loans for investment purposes, with a loan negotiation success rate of 67.0%.p.4
• Internal sources provided the majority of investment capital, with SMEs deploying a record EUR 130 billion in own funds.p.24

Key insights

1. Nominal SME turnover rose by 2% to EUR 5,179 billion in 2024, but price-adjusted aggregate turnover contracted by -1%.p.3
2. SMEs accounted for 71.6% of overall employment in Germany, with the sector employing 33.01 million workers.p.3
3. Micro-businesses reversed a six-year downward trend by increasing average profit margins by 1.1 percentage points to 12.4%.p.9
4. SME digital sales through e-commerce grew by 11% or EUR 30 billion to reach EUR 306 billion in 2024.p.7
5. The number of SME borrowers using bank loans to fund investments grew by 100,000 to reach 615,000.p.4
6. Public promotional funds contributed EUR 34 billion to SME investment financing, maintaining a 13% share of total investment funding.p.24
7. Over 96% of SMEs maintained adequate debt servicing capacity, while the share of companies with critical debt sustainability ratios stood at 3.6%.p.4