26% mid-size German firms mulls quitting due to bureaucracy

One in four mid-sized companies in Germany are considering giving up the business, reported dpa, quoting a recent poll.

While 26% mull selling up, some 22% of SMEs are considering relocating abroad, said the survey by the Association of Small and Medium-Sized Enterprises, seen by dpa.

The main problem is excessive bureaucracy, with just under a third of respondents saying they are constrained by too many regulations.

More than a quarter said high taxes and duties are an obstacle to their business.

Likewise, a good quarter of respondents said business was restricted by the shortage of skilled workers which is growing worse.

"The results of our survey are more than just a warning signal," said Markus Jerger, chairman of the association, according to a statement.

People should be concerned at the fact that entrepreneurs with strong ties to their home country are thinking about giving up or moving abroad, Jerger said.

The SMEs all expressed a firm desire for stability and reliability in terms of basic conditions that shape their business. However, almost 40% rated Germany's infrastructure as positive, and 36% praised the country's political stability.

The German Association of Small and Medium-Sized Enterprises surveyed its members between July 6 and 13, with some 1,200 companies participating in the poll.