Women in the executive chair? None!

The proportion of women in the executive ranks of German SMEs continues to decline. And fewer and fewer women are starting their own businesses.

This article is part of the special feature on women in the trades.

Only 15,4 percent of all medium-sized companies in Germany are led by a woman. Women in leadership positions are also scarce across the economy as a whole. Germany lags significantly behind in international comparisons with these figures , reports KfW based on its SME panel.

The figures refer to 2017. The previous year, the share was 16,4 percent, and at its peak in 2013, it was even 19,4 percent . The number of women-led medium-sized businesses thus fell by 100.000 between 2013 and 2017, to the current total of 580.000 companies.

Declining proportion of women among founders

Photo: © rook76/123RF.comThe decline in the number of female bosses is also a result of a declining proportion of women among new business founders. Only 206.000 women dared to take the step into self-employment in 2017 (minus 23 percent compared to 2016).

The proportion of women among all founders recently fell by three percentage points and currently stands at 37 percent , according to KfW . The decline in women's participation has been particularly pronounced in full-time business start-ups. With a time lag, this trend is also slowing the growth of women-led SMEs.

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Very good situation on the labor market

KfW cites the continued very good situation on the labor market as one reason for this: employment is becoming increasingly attractive to more and more women, and career decisions are therefore increasingly being made against self-employment.

"Even in middle and senior management, there is a significant need to catch up internationally," says Dr. Jörg Zeuner, Chief Economist of the KfW Banking Group. Only 28 percent of management positions in Germany are held by women.

Germany: Management is male

The EU average is over 31 percent. Countries like Sweden and the USA reach around 40 percent. Even in emerging markets like Russia, Brazil, and Mexico, the proportion of women in management is significantly higher.

To increase the proportion of women in leadership roles, a change in social role models and corporate cultures is needed. "This requires patience, but it is essential that we actively pursue this long-term process," says Zeuner.