In Germany, many self-employed individuals find themselves in a critical situation in April 2026. 20.6 percent face acute fears regarding their economic business prospects. The triggers are a lack of orders, weak demand, and growing uncertainty. Those primarily affected are sole proprietorships and micro-enterprises with fewer than nine employees. The Jimdo-ifo Business Climate Index has fallen to a new low. Consequently, income losses, business closures, and a reduction in local services are threatening the very existence of many businesses. (ifo: 19.05.26)
Self-Employed Report Dramatic Shortage of Orders
Almost one in two businesses surveyed reported a lack of orders in April. The figure stood at 48.4 percent; in January, it was 46.6 percent. This further exacerbates the business situation for the affected firms. A comparison with the broader economy highlights the particular weakness of this group.
There, the seasonally adjusted share of businesses suffering from a lack of orders stood at 39.0 percent. However, sole proprietorships and micro-enterprises are hit by this downturn more quickly. They often possess limited financial reserves. Furthermore, they are rarely able to spread their ongoing costs across multiple business divisions. Consequently, weak demand rapidly escalates into an existential threat.
Business Climate Hits New Low
The Jimdo-ifo Business Climate Index declined significantly in April. It fell from minus 20.8 points in March to minus 29.9 points, thereby reaching a new all-time low. Moreover, business expectations deteriorated further. Many respondents also assessed their current business situation much more negatively.
This decline represents more than just low morale; it signals a broader economic slowdown. As a result, self-employed individuals are postponing investments. Many are also refraining from making new purchases. This further dampens demand. Consequently, small-scale providers lose their scope for growth and job creation.
Uncertainty Stalls Planning and Orders
38.8 percent of respondents find it difficult to assess their future business development. In March, this figure stood at 36.4 percent. Uncertainty is therefore continuing to rise. Furthermore, many clients remain cautious. Private consumers, too, are tightening their purse strings.
ifo expert Katrin Demmelhuber describes the situation in no uncertain terms: “The combination of a lack of orders and growing uncertainty is placing an increasing strain on self-employed individuals.” She also points to corporate restraint and subdued consumer sentiment—two factors that impact small businesses particularly directly. While larger firms are able to absorb costs, small-scale providers often lack these financial buffers.
Service Providers Feel the Crisis Most Acutely
Since August 2021, the index has tracked sole proprietorships and micro-enterprises. It covers all economic sectors; however, its primary focus lies on the service sector. It is precisely in this area that revenues often depend on daily bookings, appointments, and short-term contracts.
Consequently, these figures serve as an early warning signal for the domestic economy. When nearly one in two small businesses reports a lack of orders, local repercussions inevitably follow. Tradespeople, consultants, retailers, and service providers suffer a loss of revenue. Furthermore, economic diversity diminishes in many regions. Providers without an established client base are particularly vulnerable.
This trend also impacts consumers. Fewer small businesses mean fewer choices. Moreover, business closures can undermine local supply and service provision. The data therefore highlights a serious strain on a vital segment of the German economy. The critical question now remains whether demand and planning certainty will recover.