Report: Saxony's SMEs are the backbone of the economy

Saxony's SMEs remain the backbone of the Saxon economy, according to the state government. According to the SME report published in Grimma on Wednesday, more than 131,600 companies subject to VAT were registered in Saxony in 2021, almost all of which are SMEs. The proportion of small and medium-sized enterprises (SMEs) is slightly higher than the national average (99.5 percent). According to the report, SMEs are companies with a maximum of 249 employees and an annual turnover of up to 50 million euros or a balance sheet total of up to 43 million euros.

In addition, the size structures of the Saxon economy are similar to the overall German level. The share of SMEs in total turnover has decreased from around 67% in 2016 to around 54% in 2021. The nationwide SME share of turnover is around 33%. Although the turnover shares of large companies in Saxony have increased significantly, the figures illustrate the continued importance of SMEs, according to the report by the Ministry of Economic Affairs.

"The transformation of the economy can only succeed with a strong SME sector," said Minister of Economic Affairs Martin Dulig (SPD). At a good 54 percent, SMEs generate more than half of the goods and services produced in Bavaria. They employ around 72 percent of the workforce and train around 70 percent of apprentices.

The report was compiled by the Ifo Institute Dresden together with the Center for Social Research Halle (ZSH). For the first time, it also analyzes the situation of market-oriented social enterprises - so-called social entrepreneurs. Dulig visited the company Hejmo-Homes, which develops sustainable modular houses and compact mini houses - so-called tiny houses - with Social Affairs Minister Petra Köpping (SPD) in the district of Leipzig.