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Sprawling bureaucracy in Saxony: "It's madness, you need folders for everything"

Bureaucracy, rising prices, insecure SMEs: Saxony's economy is facing major challenges. What is crucial for its success? The "Saxony Compass" and business representatives provide answers.

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Man sieht Handwerker Mike Schärschmidt
Craftsman Mike Schärschmidt from the Leipzig area suffers from the paperwork. © Andre Kempner

From Florian Reinke

Leipzig. Mike Schärschmidt knows from his own experience that there are always ups and downs - after all, he's been in the business long enough. But the past few years, says the owner of a plumbing and heating company from Markranstädt, west of Leipzig, have been particularly challenging, even drastic. The chaos surrounding the Heating Act is just one example that has stayed with him.

If you ask Schärschmidt about his biggest concerns these days, he mentions three things in particular: "Bureaucracy, rising costs and the situation of SMEs". It is a triad that he has by no means identified alone: As the results of the "Sachsen-Kompass" survey conducted by Sächsische Zeitung and Leipziger Volkszeitung reveal, people in Saxony feel very similarly.

Saxony Compass: Reducing bureaucracy is crucial

23,013 people responded to the survey on the topic of "Economy & Work" - and to the key question: Which factors are particularly decisive for the future success of the economy in Saxony?

Reducing bureaucratic hurdles leads the top 3 with 62.4% (14,350 votes), followed by strengthening SMEs with 61.9% (14,255) - and low energy prices with 48.6% (11,195 votes). This means that the Saxons seem to be well aware of which issues are pressing in the state's companies. Business representatives also see a great need for action here.

"This is madness"

Company owner Schärschmidt can only agree. When he hears the word bureaucracy, his pulse seems to quicken. "It's madness," he says: "You need folders for everything, you have to keep almost everything." Space is the least of the problems, he says, but bureaucracy costs time and money.

This starts with customer discussions about suitable heating systems. "It used to take two to three hours to prepare an offer," says Schärschmidt. "With the CO2 consultation that we now have to provide, it can take six

Corresponding examples can be found in almost all sectors. When asked about the survey mentioned at the beginning, Kristian Kirpal, President of the Leipzig Chamber of Industry and Commerce and spokesperson for the state working group of the Saxon Chambers of Industry and Commerce, says he is not surprised. "Our surveys paint an almost identical picture."

Saxony's economy is characterized by SMEs

He refers to the core demands of the Saxon CCIs for the state election, which included responses from a good 1,700 member companies. "85 percent of them are calling for approval procedures to be made less bureaucratic and faster. The companies complain that the right framework conditions are not being set in political control, but that micromanagement is being practiced," says Kirpal.

Why is bureaucracy such a big issue in Saxony's companies? It is important to consider that the economic landscape in Saxony is characterized in particular by small and medium-sized companies. We are therefore dealing with "serious problems", says Kirpal. "Because a large company is more likely to find the capacity to write a sustainability report or track supply chains, for example." In small and medium-sized companies, this is also done by the management - with the result that there is less time and energy left for the core business.

IHK boss calls for "enabling instead of preventing"

"Public administration must see itself as a partner to companies. The principle of 'enabling rather than preventing' needs to be in the minds of everyone from clerks to top management," demands Kirpal. This also leads to the second point, the strengthening of SMEs.

Mathias Reuschel, Chairman of the S & P Group and President of the business association "Gemeinsam für Leipzig", would like companies to have more time for their actual tasks again. Politicians must keep in focus "that we companies have real opportunities to create value". And this also includes reducing bureaucracy - so the two are interlinked.

How can SMEs be strengthened?

Mike Schärschmidt, the company owner from the Leipzig area, does not have to worry about one aspect of his business: The succession of his company has been clarified and his sons are set to take over the company in the future. But not all companies in Saxony are faring so well. According to the Chamber of Industry and Commerce, "a large number of company successions are pending throughout the state" - another challenge. These need to be made easier and financially supported - and in this way strengthen the SME sector.

And that's not all: companies also want accompanied transformation processes towards a low-carbon economy. "And the energy supply must be secure, affordable, open to technology and sustainable," says Kirpal. What worries him despite all the uncertainty: He is currently observing a low level of willingness to invest on the part of companies. Kirpal warns: "We must always remember that companies generate prosperity for us all. We must give this the importance it deserves."

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