The proportion of small and medium-sized enterprises (SMEs) in Germany led by women has seen a decline, according to recent findings from KfW Research. In 2024, only 14.3% of the approximately 3.84 million SMEs had a female leader, marking the lowest figure since the initial survey conducted by the KfW SME Panel in 2003. This is a decrease from 15.8% in 2023 and significantly lower than the peak of 19.7% in 2022.
KfW Executive Board member Katharina Herrmann commented on the issue: “We are far from closing the gender gap in the boardrooms of SMEs, even if we would have liked to send out a different message on International Women's Day. And yet, there are more than enough good reasons for Germany and the SME sector to make better use of the potential of women."
Most female-led enterprises are micro-businesses with fewer than five employees, with about 85% operating within the services sector.
The trend extends beyond boardrooms; other management roles such as team leaders and heads of divisions or departments also saw a decline in female representation. The share of women in all management positions within SMEs fell by 4.9 percentage points to reach 21% in 2024, despite women making up 47% of the workforce.
Herrmann noted an increase in entrepreneurial interest among women: “The fact that more women have recently wanted to become entrepreneurs again and their start-up activity has increased is a ray of hope." She emphasized that breaking down gender stereotypes and removing obstacles is crucial for revitalizing women's entrepreneurial spirit.
KfW continues to support SMEs through various promotional programs aimed at facilitating business transfers and start-ups without financial barriers.