German Family Businesses Like Russian Market: Study

Family businesses in Germany love to be active in Russia, a new study has shown, according to DW

Representatives of such businesses said they prefer Russia over all the big emerging markets because the country provides the most favorable labor market and investment conditions.

Despite current political tensions and frequent concerns over the rule of law, a number of emerging economies have recently been able to enhance their attractiveness vis-a-vis German family-run businesses, a new survey by the Leibniz Center for European Economic Research (ZEW) bears out.

The study says that many emerging nations have increased their efforts to become more attractive to foreign small- and medium-sized businesses across Germany.

According to ZEW’s most recent ranking, Russia was able to defend its top position as the emerging market that German family firms trust most. They said they were highly pleased with the skilled workers on the ground, but also mentioned the favorable situation pertaining to taxation and low energy costs in Russia. The country retained its top slot despite getting extremely bad marks for its democratic institution-building endeavors.

Runner-up Turkey was also perceived to have taken a string of measures to enhance its attractiveness for both domestic and foreign investors, with German family businesses embracing the nation‘s favorable tax laws and liberal regulatory stipulations.

China was also among the emerging economies where German family firms registered improvements, making investments easier for them. They did complain, though, about a lack of skills among the workforce and low productivity.

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