Self-employed individuals experience a positive shift in emotional state
The Jimdo-ifo Business Climate Index, a tool designed specifically for solo self-employed individuals and small businesses (fewer than 9 employees), was first calculated by the ifo Institute in August 2021. This index, now a regular monthly measurement, provides insights into the business climate for these groups in Germany.
In August, the index improved from -16.9 points in July to -13.8 points, indicating a more positive outlook. This improvement was partly due to the self-employed evaluating their current businesses less negatively and a more optimistic outlook for the future. However, despite this improvement, the situation remains challenging.
Uncertainty has risen again among the self-employed after three consecutive declines, with 30.1% of respondents finding it challenging to assess their future business development in August, an increase from 29.0% in July.
The improvement in the index was particularly noticeable in the retail sector, where the business climate has significantly improved. This improvement was mainly due to improved expectations, while self-employed individuals also evaluated their current situation somewhat better. The mood among service providers has also improved somewhat.
Katrin Demmelhuber, an ifo expert, described the current situation. She noted that nearly half of self-employed and small business owners consider their retirement provision sufficient, while over half are uncertain or feel insufficiently secured. Interestingly, 97% of respondents have at least one form of retirement provision, with many combining multiple types. This correlation suggests that a diversified and targeted planning approach for ensuring security is crucial.
The Jimdo-ifo Business Climate Index is a valuable addition to the tools used to measure the business climate for solo self-employed individuals and small businesses. It serves as a comprehensive tool that focuses on this specific sector, providing essential information for policymakers and businesses alike.
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