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Eastern business owners fear for future as young people leave

As young people in Germany have literally 'gone west', small business owners in Eastern states face a quandary: Who will they pass their life’s work on to?

Eastern business owners fear for future as young people leave
Photo: DPA

In the past, many businesspeople looked to their offspring as future leaders of their companies. But, according to Die Welt newspaper, by 2014 around 18,000 owners will not have anyone to take over the family business, and some will have problems selling it to an outsider.

Many youngsters are moving out of relatively poor states like Saxony to more prosperous parts of Germany – or leaving the country completely. To make matters worse, birth rates are falling precipitously. Saxony’s government estimates that by 2020 the number of people in the state aged between 26 and 46 – prime ages to take over small businesses – will have decreased by a quarter.

Experts say it is important to develop succession plans early, even if it looks as if it might be many years before they are put into place.

But the reality is that although 58 percent of owners would like to pass on their business to family members, only 44 percent will be able to, according to the Bonn-based IfM, which studies small and medium-sized businesses.

That means owners need to ensure their companies remain attractive to potential outside buyers by, for instance, ensuring workers stay well-trained and technology remains up-to-date.

“Many businesspeople concern themselves with the succession question far too late,” Andreas Lehmann of the Potsdam Chamber of Commerce and Industry (IHK) told Die Welt.

Groups like IHK offer special services to try to attract buyers for businesses on the market, but it can be difficult to do in some of East Germany’s most unappealing and worst-off areas.

And even when there is interest, some business owners, like Martin Musick, struggle to find a buyer who will protect what they’ve built up over the years.

Musick, who runs Elektrocom, a technology firm in Brandenburg, not far from Berlin, has had several offers for his business.

But, he told Die Welt, he feels responsible for his employees and is still searching for the perfect buyer.

What really pains him, however, is that his children do not want to take over the business.

“One wants the best for his children,” he told the newspaper, describing how he had sent his offspring abroad to America for a year.

Now, they’re more interested in international careers than playing a part in Elektrocom’s future.

So the 61-year-old is once more searching for buyers for his 17-employee firm.

He’s currently negotiating with two people, both of who he says are “Easterners” and know the region.

The Local/mdm

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TRAVEL NEWS

What we know so far about Berlin’s follow-up to the €9 ticket

After weeks of debate, Berlin has settled on a new budget ticket to replace the €9 ticket for a limited time. Here's what know about the travel deal so far.

What we know so far about Berlin's follow-up to the €9 ticket

So Berlin’s getting a new €9 ticket? Cool!

Kind of. Last Thursday, the Berlin Senate agreed to implement a €29 monthly ticket from October 1st until December 31st this year. 

It’s designed to bridge the gap between the end of the €9 ticket deal and the introduction of a new national transport deal that’s due to come into force by January 2023.

The Senate still hasn’t fleshed out the details in a written decision yet, so some aspects of the ticket aren’t clear, but we do know a few things about how it’ll work. For €29 a month, people can get unlimited travel on all modes of public transport in Berlin transport zones A and B. That means buses, trains and trams are all covered – but things like taxis aren’t. 

Wait – just zones A and B. Why’s that?

One of the sticking points in planning the new ticket was the fact that neighbouring state Brandenburg was reluctant to support the idea. Franziska Giffey (SPD), the governing mayor of Berlin, had annoyed her neighbours and surprised her own coalition partners by suddenly pitching the idea at the end of August – shortly before the €9 ticket was due to expire.

At the time, the disgruntled Brandenburg state premier Dietmar Woidke (SPD) complained about the lack of advance notice for a proper debate. He had previously ruled out a successor to the €9 ticket in the state. Meanwhile, the CDU – who are part of the governing coalition in Brandenburg – slammed the idea for a new cheap ticket as a “waste of money” and an attempt to “buy votes” for the SPD.

The blockade meant that plans for a Berlin-Brandenburg ticket run by transport operator VBB had to be scrapped, and the monthly ticket has instead been restricted to the two transport zones solely operated by Berlin’s BVG. Since zone C stretches into Brandenburg, Berlin couldn’t include this zone in the ticket unilaterally. 

Berlin transport zones explained

Source: S-Bahn Berlin

The good news is that zones A and B cover everything within the city’s borders, taking you as far as Spandau in the west and Grunau in the southeast. So unless you plan regular trips out to the Brandenburg, you should be fine.

However, keep in mind that the Berlin-Brandenburg BER airport is in zone C, so you’ll need an ‘add-on’ ticket to travel to and from there. It’s also not great for the many people who live in Potsdam in Brandenburg and commute into Berlin regularly. 

READ ALSO: Berlin gets green light to launch €29 transport ticket

How can people get hold of it? 

Unlike the €9 ticket, you won’t be able to buy it at stations on a monthly basis. Instead, the €29 ticket is only for people who take out a monthly ‘Abo’ (subscription) for zones A and B. If you’ve already got a monthly subscription, the lower price will be deducted automatically, while yearly Abo-holders will likely get a refund. 

You can take out a monthly subscription on the BVG website here – though, at the time of writing, the price of the ticket hadn’t been updated yet. According to Giffey, people will be able to terminate their subscription at the end of December without facing a penalty. 

What types of ‘Abos’ are eligible for the deal? 

According to Berlin transport operator BVG, people with the following subscriptions are set to benefit from the reduced price from October to December: 

  • VBB-Umweltkarten with monthly and annual direct debit
  • 10 o’clock tickets with monthly and yearly direct debit
  • VBB-Firmentickets with monthly and yearly direct debit 
  • Trainee subscriptions with monthly direct debit

People who already have reduced-price subscriptions, such as over-65s and benefits claimants, aren’t set to see any further reductions. That’s because many of these subscriptions already work out at under €29 per month for zones A and B. 

Passengers exit an U-Bahn train in Berlin

Passengers exit an U-Bahn train at Zoologischer Garten. Photo: picture alliance/dpa | Jörg Carstensen

Can students with a Semesterticket get it as well?

That’s one of the things that still needs to be clarified. It’s possible that universities will choose to refund part of the Semesterticket price like they did with the €9 ticket. The Local has contacted BVG for more information. 

Can I take my bike/dog/significant other along for the ride? 

Once again, this doesn’t appear to have been ironed out yet – but we can assume that the usual rules of your monthly or yearly subscription will apply. So, as with the €9 ticket, if your bike is included in your subscription, you can continue to take it with you. If not, you’ll probably have to pay for a bike ticket.

In most cases, monthly BVG subscriptions allow you to take one dog with you for free, and also bring one adult and up to three children (under 14) with you on the train on evenings and weekends. These rules are likely to stay the same, but we’ll update you as soon as we know more. 

How much is this all going to cost?

According to regional radio station RBB24, around €105 million is set to be put aside in order to subsidise the temporary ticket. However, this still needs to be formalised in a supplementary budget and given the green light in the Senate. 

An S-Bahn train leaves Grünewald station

An S-Bahn train leaves Grünewald station. Photo: picture alliance/dpa | Christophe Gateau

OK. And what happens after the €29 ticket?

That’s the million – or, rather, billion – euro question right now. In its latest package of inflation relief measures, the federal government said it would be making €1.5 billion available for a follow-up to the €9 ticket.

The ticket is set to be introduced by January 2023 and will rely on Germany’s 16 states matching or exceeding the federal government’s €1.5 billion cash injection. So far, it looks set to be a monthly ticket that can be used on public transport nationally, with the price set somewhere between €49 and €69.

However, the Greens continue to push for a two-tier model that would give passengers the option of buying either a regional or national ticket. Under their proposals, the regional tickets would cost €29 and the national tickets would cost €69.

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