Depth report

　　

Driving along the "Romantic Road" between the two towns of Baden-Württemberg in southern Germany, people can easily admire the lush rolling hills, vineyards and picturesque villages. However, if you look closely, you will find a factory standing there. Looking further, you will find that the area between the two historic towns of Bad Mergentheim and Wertheim is full of medium-sized or "small and medium-sized enterprises".

    Winfred Weber, a professor of management at the Mannheim University of Applied Sciences, said: “You might think that the companies here are just small companies. There are no large world-class companies in Germany, but some world-class factories in Germany are also Hidden in the valley between the mountains." Weber's enthusiasm for private enterprises-usually still family businesses-stems from a number of personal reasons. His grandfather was a watchmaker. In the 1950s, his grandfather was forced into bankruptcy by competition from Japan.

"Hidden Champion"

    Weber has lectured around the world and received business delegations from South Korea and China. "I tell the members of the delegation, don't go to Berlin, go to this village in southern Germany," he said to me as he drove along the slightly winding road. He also said, "Here you will Found many world-class small and medium-sized enterprises, these enterprises have different numbers of employees.

    Approximately 99% of German companies are small and medium enterprises, with a total of more than 3.3 million. Strictly speaking, as an SME, the number of employees cannot exceed 500. But this word is a more professional term, it defines a kind of business thinking. Professor Weber said: "In Germany, many small and medium-sized enterprises have been exporting products from the beginning." "These SMEs try to be at the forefront of innovation, find and occupy a niche market, and then sell on an international scale. Professor Weber It is also believed that the most successful companies are the world market leaders in niche fields, the so-called "hidden champions."

    Weber firmly believes that the active development of overseas markets for SMEs is the root of Germany's strong export capabilities. Professor Weber said: “Of the global top 500 companies, there are only 28 German companies, but we account for about 48% of the world’s leading companies in the small market.” We are rushing to meet with Gabriella Koenig. She is Koenig & The general manager of Meyer, this company can be said to be a "hidden champion." Gabriella Koenig's company produces music equipment and microphone stands. If you are a musician, you may have used one of their products. Gabriella Koenig is slim with short dark hair; she looks energetic and passionate. In the parking lot, she introduced me to her 81-year-old father. Both father and daughter couldn't wait to tell me the history of the company. This company was founded in the 1830s by Gabriella's grandfather and his business partner. However, after World War II, the company moved to Wertheim in western Germany. Gabriella is now the third-generation head of this company.

    Gabriella walked into a big noisy factory full of primitive metal processing machines. She said in the roar of the machine: “In order to ensure product quality, almost every production process is completed in China, so that we can truly control every production process.” For small and medium-sized enterprises, exports have been The most important business of the company. She said: “As early as the 1950s, Koenig&Meyer participated in the first trade show held in Frankfurt and found the first international partner.” Today, the company’s three factories employ a total of 280 employees. Turnover is 38 million euros (34 million euros; 44 million US dollars). About 60% of sales are from more than 80 countries around the world, and 70% of sales are from Europe. Gabriella said: "Even though our products are 15% to 20% more expensive than competitors' products, customers can also accept this. However, will the weakness of the euro help our exports? I will say for sure. There is no doubt that, like all other German companies that export large amounts of products, the euro also helps us increase exports."

trade surplus

    Germany has been criticized by its trading partners, saying that its exports far exceed imports. Last year, Germany's trade surplus with China was close to 300 billion U.S. dollars, and a large part of it came from the contribution of these small and medium-sized enterprises. The wage restrictions, labor market and welfare reforms of the past 15 years have all made Germany more competitive. Another criticism of Germany is that it has insufficient domestic investment. The International Monetary Fund is urging the German government to increase investment in public infrastructure projects. The agency said that this initiative will help German companies increase domestic investment and help Germany rebalance global trade. But Professor Weber said that although German SMEs have achieved success in export, they are also facing challenges.

    Enterprise inheritance may be a problem. Although Gabriella has no children, she still said that the company will stay in the family. It is also a challenge to recruit enough skilled employees-Koenig&Meyer has developed an apprenticeship program to train employees. However, Gabriella said: “Now, it is increasingly difficult to recruit young people who are willing to join the company.” Although small and medium-sized enterprises have strong innovation capabilities, such as Koenig&Meyer, they produce 20 to 30 new products every year. After all, it is not Silicon Valley, and it is not so attractive to young people.

    Professor Weber said: “The fewer IT startups in Germany, the less venture capital they will get.” But he also said that the prospects are long-term. “You can say that our capitalism is more patient capitalism.” He also believes that his companies can learn from small and medium-sized enterprises. "I think that big companies in the future will, like many small and medium-sized enterprises, adopt a more down-to-earth approach, adopt a flatter hierarchical structure, take on more responsibilities, and use more Flexible workforce."