SMEs, 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.


Small and medium-sized companies (SME) render about 40 percent of the annual economic performance and more than 50 percent of the annual investment. Because of their particular core competencies, many of these 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. In Bavaria, there are just as many innovative startup companies with an international background as family-run businesses in which special skills have been passed on from generation to generation.

This structural diversity makes Bavaria 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.

SMEs are the foundation of the Bavarian economy, representing a guarantee for prosperity and future-proof jobs and training opportunities. This includes small and medium-sized companies 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.