Strengthening entrepreneurship in a lean and efficient state

Innovations and thus the successful development of our national economy are only possible with a courageous spirit of enterprise. The electrical eningeering and electronics industry driven by innovation depends on innovative, venturesome entrepreneurs and their investments more than other industries. They require an organised environment, in which the state restricts itself to its core tasks, issues economic guidelines and provides an appropriate infrastructure.

Despite a high tax burden, the state’s investment rate is currently at an all-time low. With consistent consolidation of the public budgets with simultaneous restoration of the state’s tasks, falling taxes and contributions are possible. The privatisation of government tasks at the same time leads to more efficient performance, more innovations, higher growth and – if the framework conditions are right – sustainable modernisation investments. Companies can also take on tasks that an overloaded state can only look after with limited success.

From the viewpoint of the electrical engineering and electronics industry, the following steps are urgent to strengthen enterprise in a slim and efficient state:

• Tasks that are not part of the core area of the government’s performance, should be excluded and entrusted to trade and industry, that assumes them on its own responsibility. With its solutions, our industry offers the opportunity to reduce the state quota if regulations that promote investment are found.
• More concrete projects should be privatised or achieved in so-called Public Private Partnerships. The necessary framework conditions that promote investment must be found for these privatised areas. Considerable potential exists here in the areas of trasnport/infrastructure, health care, training and management infrastructures, security and defence.
• The acquisition of personal capital, in particular in SMEs, can be improved: by reducing the tax burden and contributions and by improving the access to private equity and venture capital. If the tax rates are compared internationally, then the total tax of German companies is significantly higher than in the most important competing countries.
• For young companies, the taxes should be kept as low as possible during the construction phase, for example through less extravagant and cost-driving approval procedures. Approval requirements must be reduced, periods shortened and the access to capital improved.
• Effective protection of innovation and investment is necessary by uniform simple patents and copyright regulations throughout Europe, in particular also for software or computer-based inventions.
• Effective market monitoring as well as international agreements to protect intellectual property and private investments must guarantee  that companies’ rights are secured.
• The importance of entrepreneurs and entrepreneurial thinking and acting must be strengthened in our society. Entrepreneurship should be a subject of education.
• New growth potential for companies in the electrical engineering and electronics industry can currently be developed in Eastern Europe, Russia, India, South-East Asia and China. It is precisely SMEs that the ZVEI wants to offer concrete support and functioning networks.
• Great growth potential must be mobilised for the branches in the area of service companies, from engineering via maintenance and service and enterprise to finance and the further development of plants and systems.

Concrete ZVEI initiatives

• ZVEI Taskforce “PPP”: conditions for success for Public Private Partnership Projects in Germany
• ZVEI initiative: “Young companies in the electrical engineering and electronics industry”