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Mittelstand


Sisyphus

Active member
Joined
Aug 2, 2010
Messages
256
Germany is right

This article is from The Guardian.

Why is the German economy so strong and resistant to recession?

Perhaps it is due in part at least to the medium sized enterprises which thrive so well in that country. This sector is called Mittelstand.

Some of the things that resonate with me from reading this article are the importance of ethical behaviour in business and the collaborative approach in dealing with employees, suppliers and customers.

Some of the benefits I see are happiness at work driven by ongoing training and development, better productivity, recognition of the value of R&D, and a long term outlook.

The approach of the Mittelstand contrasts with the "get-rich-quick" approach of companies elsewhere which sometimes up and leave after the prospects of big profits fade away. According to the article, in Germany, while there is no right to profit, the right to work is essential.
 

gerhard dengler

Well-known member
Joined
Feb 3, 2011
Messages
47,554
Mittelstand is the backbone of industrial policy throughout Germany.

And we could do worse than adapt the same approach with companies having worker councils who participate in the management and setting of targets in terms of turnover and profitability.
 

curiousorange

Well-known member
Joined
Apr 29, 2011
Messages
1,866
Ze Germans have only grown rich by sneakily stealing wealth from smaller nations!


Am I doing this right?
 

Radix

Well-known member
Joined
Aug 31, 2010
Messages
10,031
Arbeit macht frei after all...
 

Belodedici

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Joined
Oct 25, 2010
Messages
785
We probably have the exact opposite to the German Mittelstand model operating here in Ireland, motto seems to be bleed the suckers dry for every last cent and screw the consequences and future generations, the cute whore principle at work.
 

McDave

Well-known member
Joined
Jul 10, 2008
Messages
13,557
Another feature of the German economy is the relative unimportance of the stock market for economic activity and the unreasonable pressures that quarterly profit reporting places on companies. In Germany a greater proportion of business financing is done by banks who invest in companies directly in the hope that they'll pay off in the longer term.

And yet another interesting feature of the German economy is that they have retained their industrial base for all kinds of products. Which helps keep blue collar workers active. Contrast that with the US and the UK which have allowed their industrial bases to be whittled away through outsourcing and a misplaced belief that it's better to have a heavy emphasis on a services-based economy - including financial services.
 

southwestkerry

Well-known member
Joined
Aug 20, 2008
Messages
4,230
One has to say fair play to the Germans for running things right. Making things things proper. Building things that last and teaching their subjects in school right and proper.
Here in Ireland all we want is for Johnny to be a Dr and Sara to be a solicitor, result!
SwK
 

Quebecoise

Well-known member
Joined
Jun 21, 2011
Messages
375
We probably have the exact opposite to the German Mittelstand model operating here in Ireland, motto seems to be bleed the suckers dry for every last cent and screw the consequences and future generations, the cute whore principle at work.
Nothing wrong with good looking prostitutes. It's the cute feckin' hoooo-ers we have to look out for.
 

EmmettTCorcoran

Active member
Joined
Jan 28, 2013
Messages
115
It's true that small and medium sized businesses that create sustainable local jobs are the keys to a strong economy. Recovery can only be lead by government enabling entrepreneurs to start or re-start their businesses and keep money in the local and domestc economy as a whole, also a little bit of national pride goes a long way.
 

Boy M5

Well-known member
Joined
May 20, 2010
Messages
21,731
Germany is right

This article is from The Guardian.

Why is the German economy so strong and resistant to recession?

Perhaps it is due in part at least to the medium sized enterprises which thrive so well in that country. This sector is called Mittelstand.

Some of the things that resonate with me from reading this article are the importance of ethical behaviour in business and the collaborative approach in dealing with employees, suppliers and customers.

Some of the benefits I see are happiness at work driven by ongoing training and development, better productivity, recognition of the value of R&D, and a long term outlook.

The approach of the Mittelstand contrasts with the "get-rich-quick" approach of companies elsewhere which sometimes up and leave after the prospects of big profits fade away. According to the article, in Germany, while there is no right to profit, the right to work is essential.
Thanks for the thread.
These Mittelstand companies are to some extent household names like

Birkenstock Chronicle

Often occupying defendable niches and with a longterm vision for the business but clearly market leaders and keep focused on their markets, often they lead them - as a longterm vision means focus on R & D and innovation.

The only thing against them is they rely on cheap credit from Germany's public sector banks (of which there are too many) and can have balance sheets with higher levels of debt than is ideal.
Of course our bankers (at least in the supposed pillar banks) seem to only lend for property speculation and to publicans and care home owners (just look at databases of syndicated loans).
 

Boy M5

Well-known member
Joined
May 20, 2010
Messages
21,731
It's true that small and medium sized businesses that create sustainable local jobs are the keys to a strong economy. Recovery can only be lead by government enabling entrepreneurs to start or re-start their businesses and keep money in the local and domestc economy as a whole, also a little bit of national pride goes a long way.
Its a shame that some joker decided that Jim Power should front the love Irish food campaign.
Its like hiring a Kamikaze pilot to front an airline's frequent flier programme.
 

Sancho

Well-known member
Joined
Feb 15, 2006
Messages
365
In conversations with German friends about the current austerity, I keep trying to get them to understand: "you are Adults in Germany. We are Children in this country"
 

Sisyphus

Active member
Joined
Aug 2, 2010
Messages
256
The German work ethic, a cliche I know. I worked in German factories for two summers when I was a student. I was impressed by the work ethic of the workers, managers and admin personnel. By and large the workforce seemed to be happy an motivated to do a good job. This is not the case everywhere else.
 

EoinMag

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Joined
Aug 4, 2010
Messages
4,950
In almost ten years working service industry in Germany, primarily as a waiter, I was presented with a grand total of 2 credit cards. I dealt with up to a million customers in that time. I finsihed in 1997, so it's a while back.

The Germans do not spend money they do not have, it is against their psyche.

I will presume they carry this to their business ethic.

That said German business is very corrupt and if you want something done you need to sweeten the deal....always.
 

Davidoff

Well-known member
Joined
Oct 4, 2010
Messages
1,485
The property bubble didn't help.

Why invest in a productive, employment-creating business when you could borrow cheap money, claim every tax break going and get rich while doing nothing.

And best of all, the government and half the country are willling those days to return.
 

McDave

Well-known member
Joined
Jul 10, 2008
Messages
13,557
In almost ten years working service industry in Germany, primarily as a waiter, I was presented with a grand total of 2 credit cards. I dealt with up to a million customers in that time. I finsihed in 1997, so it's a while back.
That's been my experience much more recently than that. They use debit cards alright. But credit cards? No. Cash is king. €100 notes are not that rare there. Hardly ever see them here.
 

Carl Claudius

Well-known member
Joined
Dec 21, 2012
Messages
1,263
The property bubble didn't help.

Why invest in a productive, employment-creating business when you could borrow cheap money, claim every tax break going and get rich while doing nothing.

And best of all, the government and half the country are willling those days to return.
The Germans I know bought property cos they wanted to live in it. we bought property as an investment, to get on the property ladder or as a starter home.
 
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