SME, trade, skilled crafts

The Bavarian economy is just as versatile as the state itself. World-famous flagships of the German economy are based here. Global players from other countries have also found the ideal location for their German and European business in Bavaria. However, the actual strength of the Bavarian economy is the mid-sized sector that shapes the free state’s economic structure with its excellent innovative capacity. Numerous hidden champions are just as much at home in Bavaria as world famous brands.


Small and medium-sized companies (SME) account for around 40 percent of Bavaria’s corporate turnover, for over 75 percent of jobs and over 80 percent of vocational training positions.

Because of their particular core competencies, many Bavarian SME have become market leaders in their respective segments. The scope of services varies from old-established workmanship through sophisticated production-related services up to university-related research and development projects in the hightech sector. Bavaria stands for innovative startup companies as well as for family-run businesses in which special skills have been passed on from generation to generation.

As a vibrant ecosystem for company founders is key to sustainable economic success Bavaria’s government has launched a broad start-up initiative, whose actions range from new digital incubators to government sponsored business plan competitions.

Thanks to its structural diversity Bavaria is one of the most attractive investment locations for companies at home and abroad, regardless of their size. For almost every industrial sector and focus, there are plenty of chances as far as innovation and growth are concerned—from the specialized supplier environment through the unique research sector and expert qualification up to manifold opportunities for cooperation with networks and clusters.

SME are the foundation of the Bavarian economy, representing a guarantee for prosperity and future-proof jobs and training opportunities. This includes SME in trade, skilled crafts, the services industry and freelance professions. That is why solid general conditions and funding opportunities specifically tailored to the SME sector are important objectives in Bavarian economic and SME policies.