ELECTION: TOP 10 STRATEGIC ACTIONS FOR SMES

One day after the Bundestag election 2025, Andreas G. Stütz (CIO, IDEASCANNER) publishes the following article:

10 key areas of strategic support for German SMEs in a multipolar world order

With these 10 strategic measures, the new German government could effectively support German SMEs.

German SMEs are facing a historic turning point: global supply chain disruptions, geopolitical tensions, technological disruptions and systemic competition with China require a reorientation of economic policy.

Analysis of current studies and European coordination mechanisms shows that competitiveness can only be ensured by a networked overall strategy consisting of ten core areas.

1. Energy security and raw material autonomy

Transformation of the energy paradigm

The price explosion for electricity and gas requires a triad of short-term relief measures, medium-term substitution strategies and long-term investments in hydrogen technologies. Model projects for industrial energy communities – such as joint PV parks for SMEs – could reduce dependence on volatile world market prices. At the same time, the German government must intensify raw material partnerships with lithium-rich countries such as Chile and enshrine recycling quotas for critical metals in law.

The circular economy is a resilience factor

Switching to closed material cycles is the key to reducing import dependencies and creating new business models. Tax breaks for remanufacturing facilities and standardisation initiatives for modular products are the decisive levers here.

2. Securing skilled workers through an education offensive

Dual training system 4.0

The training premium for SMEs must be doubled in view of the shortage of skilled workers at 66% of SMEs. At the same time, dual training must be made more attractive through digital learning factories and AI-supported tutoring systems. Pilot projects for “assisted training”, for example through state-funded training mentors, must better integrate disadvantaged young people.

Intelligent immigration management

The Canadian points system provides models for a qualification-oriented immigration policy.Accelerated recognition procedures for engineering degrees from third countries and special economic zones with simplified labor laws must make Germany a more attractive location.

3. Digital quantum leap in production

AI implementation fund

It is vital that we address the fact that, although 58% of SMEs rate digitalization as a priority, many projects fail to scale. We must therefore establish a transformation fund endowed with 10 billion euros to co-finance pilot applications in key technologies such as predictive maintenance or digital twins. At the same time, regional competence centers must accelerate the transfer of knowledge between research and practice.

Cybersecurity as a joint task

Increasing networking increases the attack surface for cybercrime. State-subsidised security-as-a-service models and binding minimum standards for IoT devices will relieve the burden on smaller companies, while a cross-industry threat intelligence network based on the Israeli model will improve early warning systems.

4. Supply chain resilience through Europeanization

Strategic stockpiling

The current supply bottlenecks require a European solution. A network of regional logistics hubs with state-guaranteed minimum stocks of critical components is the only way to ensure just-in-time production. At the same time, the EU must build up crisis reserves for semiconductors and active pharmaceutical ingredients.

Nearshoring initiative for Eastern Central Europe

The relocation of supplier capacities to Poland, the Czech Republic and Romania combines cost advantages with short transportation routes. German-Polish industrial parks with integrated customs clearances and joint training workshops should become flagship projects here.

5. Innovative strength through ecosystems

SME 4.0 clusters

The successful competence centres should be expanded into regional innovation ecosystems. Linking research bonuses and binding cooperation quotas between hidden champions and start-ups creates disruptive solutions.

Patent fund for SMEs

A fund managed by KfW will support small companies in building up strategic patent portfolios, especially in future fields such as bioeconomy or quantum computing. At the same time, EU subsidy rules need to be adapted to enable technology-neutral research funding.

6. European economic coordination

Reform of the Stability and Growth Pact

The current debt ceilings inhibit investment in the future. A new type of “future investment corridor” should exclude productive expenditure on digitalization and climate protection from the deficit calculation, while consumer government spending should be more strictly regulated.

EU single market 2.0

The completion of the Digital Single Market requires uniform standards for Industry 4.0 interfaces and a harmonization of corporate taxation. A European “SME statute” with simplified cross-border company forms would reduce barriers to expansion.

7. Asia strategy in the context of systemic rivalry

ASEAN diversification fund

Instead of one-sided dependence on China, a fund endowed with 5 billion euros should support the development of alternative markets in Vietnam, Indonesia and India. Export loans with risk protection and local business scouts would facilitate market entry.

EU-China dialog platform

Joint EU negotiating teams must address Chinese market distortions such as license blockades or subsidy practices. In return, technology transfer offers in the environmental sector could bring about concessions in market access.

8. Security policy as an economic factor

Industrial resilience planning

The Federal Office for Civil Protection should work with associations to identify critical infrastructures and maintain emergency capacities for energy and IT systems. Tax incentives for redundant production sites increase crisis resilience.

Dual-use innovation program

SMEs can tap into new markets through targeted promotion of civil-military technologies (e.g. additive manufacturing, satellite communication). A “security research campus” involving the Bundeswehr and the Fraunhofer Institute would leverage synergies.

9. Sustainability transformation

Green industrial promotion

The planned Carbon Contracts for Difference regulation must be supplemented by revolving funds for hydrogen conversions. At the same time, energy-intensive SMEs need transition periods for CO2 pricing in order to adjust investment cycles.

Circular Economy Accelerator

A nationwide network of material exchanges and repair centers – supported by municipal business relocation programmes – would anchor circular economy expertise in a decentralized manner.

10. Next generation financing instruments

Equity capital offensive

We will introduce an “SME stock exchange” with a simplified prospectus procedure and tax incentives for equity capital. This will increase the equity ratio from the current 7% to 15%. At the same time, KfW will offer long-term subordinated loans at fixed interest rates.

ESG report harmonization

We will reduce the cost of sustainability reports by developing a uniform reporting standard based on the size of companies. Certification costs must be reimbursed via a European SME fund.

Integrated strategy for systemic competitiveness

Overcoming the polycrisis requires interaction between all political levels: National emergency aid to cushion energy costs, European coordination for key technologies and global market access strategies form a strategic triangle.It is vital to balance out the transformation burdens socially through intelligent funding architectures and to focus on SMEs as drivers of innovation. This networked approach is the only way to preserve Germany’s industrial DNA and expand its pioneering role in the climate transition.

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IDEASCANNER is a company that uses artificial intelligence (AI) to increase company value and accelerate digital transformation and sustainable innovation.

By analysing and evaluating business models, IDEASCANNER makes business ideas and positioning measurable.

The company offers the following services:

IDEASCANNER Expert

An AI-supported analysis to identify unique selling points and sales potential.
IDEASCANNER Strategy

Joint development of strategies to increase the long-term value of the company.
IDEASCANNER Academy

Training courses that impart the knowledge of successful venture capitalists.
IDEASCANNER SaaS

The AI Co-Entrepreneur for the independent analysis and improvement of business ideas.
Free Pre-SCAN

An initial AI-based analysis of the company or business idea.

The company was founded by Andreas G. Stütz and Melanie Stütz, who both have extensive entrepreneurial experience. They have set themselves the goal of making the expert knowledge of successful venture capitalists accessible through the use of AI and thus promoting entrepreneurial thinking.