In the SME sector, some regions are more popular than others. An analysis of Creditreform shows the concentration of small and medium enterprises (SMEs) per inhabitant in the German Länder. The term “middle class” is based on the definition of the European Commission Companies, i.e. companies with less than 250 employees and 50 million euro in annual sales.
Roughly speaking, the SME density in eastern Germany is still a little bit lower than in the western parts of Germany. Despite the high start-up dynamics in the new federal states in the 1990s, this disparity still exists, with 474 SME’s per 10,000 inhabitants in East Germany compared to 481 in West (German average: 480).
Hamburg Tops Statistics
Creditreform found the highest concentration of small and medium enterprises within the country in Hamburg with 651 companies per 10,000 inhabitants, followed by Berlin (590), and Bavaria (529). The highest SME density in eastern Germany after Berlin was recorded in Brandenburg (486), the lowest SME density in Saxony-Anhalt (408) and the Saarland (387).
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