Germany is declining in its attractiveness to family businesses, and "taxes" and "labor costs" are its weaknesses
The annual report of the German "ZEW" Institute for Economic Studies revealed that Germany has retreated to the bottom of the table of industrial countries ranking in their attractiveness to family businesses.
In the report, which includes 21 industrialized countries, Germany ranked 17th in terms of the availability of conditions for the establishment and prosperity of family businesses, only ahead of France, Spain, Japan and Italy, after it was ranked 14th in the previous year's report.
The United States ranked first on the family business index, followed by: Britain, then the Netherlands, according to a statement by the Family Enterprises Foundation, which is a dealer with the ZEW Institute.
The ZEW Institute studies several factors that rank countries in terms of their attractiveness to family businesses, such as taxes, labor costs, productivity, human capital, finance, infrastructure, institutions, and energy.
The authors of the report stated that Germany's weaknesses are the relatively high corporate taxes, labor costs, and other factors.
The report also pointed to Germany's weakness in terms of quality of infrastructure, in terms of both transport routes and information technology.
He said, "In terms of the quality of transport routes, Germany now clearly lags behind, not only in comparison with the countries of northern and western Europe, but compared to North America and Japan."
In contrast, Germany's strengths are the financing and relatively good financial resources for German family businesses, before the start of the emerging coronavirus pandemic.
It is noteworthy that the study has been issued annually since 2006. Germany's ranking has declined since that time by five centers.
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