Data Snapshot on Small Business Productivity in Germany

This technical report from the McKinsey Global Institute presents a detailed analysis of small business productivity in Germany. It highlights that micro, small, and medium-sized enterprises (MSMEs) account for a significant portion of employment and value added in the economy. The report indicates that MSMEs in Germany are 61% as productive as large companies, which is comparable to the average productivity of MSMEs in advanced economies. The research aggregates data across various sectors and subsectors, revealing that MSMEs contribute 45% to value added and 57% to employment in Germany. It emphasizes the importance of understanding productivity gaps between MSMEs and large companies, suggesting that narrowing these gaps could equate to a 2.6% increase in GDP. The findings underscore the need for tailored approaches to enhance MSME productivity, which varies significantly across sectors and countries.