Konjunktur: Jedes zweite Unternehmen sieht Bürokratie als größtes Standortproblem

A recent survey by the Ifo Institute reveals that one in two German companies consider bureaucracy and regulation the greatest obstacle to their economic location. Energy costs rank second, with 27 percent of businesses citing them as the primary issue, followed by labor costs at 22 percent. Klaus Wohlrabe, head of Ifo surveys, explains that bureaucracy impacts two ways: it consumes personnel that could be elsewhere and deters investments that become unprofitable once the approval and documentation costs are considered.

The survey shows significant variation depending on the size and nature of the company. Solo self-employed individuals are least likely to cite bureaucracy as a problem, at 33 percent, followed by micro-enterprises with fewer than ten employees, at 41 percent. The gap between large, medium, and small businesses is relatively small, with 59 percent, 58 percent, and 50 percent, respectively, identifying bureaucracy as a significant issue.

Klaus Wohlrabe elaborates that businesses involved in employment, equipment operation, and exports are subject to multiple regulatory frameworks, including labor law, reporting obligations, and data protection. He notes that as companies grow, they are simultaneously subject to nearly all these regulations, which previously applied to smaller operations.

The Ifo research also highlights notable differences across economic sectors. In the industrial sector, 39 percent point to energy costs as the main challenge, while the service sector lags behind with only 17 percent. The construction industry frequently mentions the scarcity of skilled labor (29 percent) and lengthy permit procedures (13 percent).

The retail sector, on the other hand, primarily cites weak demand: 25 percent attribute their problems to overall economic conditions and order volumes, more so than any other sector.