Made in Germany: The Business Magazine

from the Foundation for Family Businesses DW-TV: All right, I'm joined now by Stefan Heidbreder. He is with the Family Business Foundation based in Munich, and he braved the cold today and flew up from Munich here to Berlin. Mr. Heidbreder, it's good to see you. Let's start by talking first about the euro. A bleak forecast for the euro right now going into 2011. Can you imagine the eurozone breaking down and Germany returning to the German mark? Stefan Heidbreder: Oh, I can hardly believe that. You have to keep in mind that more than 60 percent of German exports go to countries within the European Union. And the success of German businesses and companies is highly related to the common currency. DW-TV: A lot of businesses -- family businesses, but businesses in general -- say that they have profited from the eurozone because transactions costs are a lot lower than they were say 11 or 12 years ago. How would you say family businesses are faring in this economic climate? Stefan Heidbreder: I think they fear that they can't plan their future anymore, because it's a very weak situation right now. And family businesses do need a horizon for planning. And these days aren't good for their business. DW-TV: It's good you bring up this topic of planning for family businesses, bcause there is a type of family planning that goes into the future of businesses that are run by members of the same family. It all seems very idlyllic -- the mother, the father, the children, the grandchildren taking over. But there's always a huge risk in that when you are counting on your offspring to continue the business isn't there? Stefan Heidbreder: Yes, that's right. Family businesses do have a big advantage and a big disadvantage both as a family. When there are struggles within the family and they can't handle that, it's the biggest burden a company can have. DW-TV: What do you hear from family businesses when you talk to them. Do they say the biggest problem there is that the children or the grandchildren aren't interested in the business? Is that the biggest fear? Stefan Heidbreder: No, I can't say that. The interest is quite high. But you can imagine the handover of a company from one generation to another is a very complex process. DW-TV: Yes, but what happens when the children say: "I don't want to do it"? Stefan Heidbreder: When all the children say "I don't want to do it", bigger family companies do have the opportunity to look for external managers. DW-TV: But they're reluctant to do that, aren't they Mr. Heidbreder? I mean, we read all the time that going outside is a big risk in the eyes of the father or the mother. Stefan Heidbreder: You can't say that in general. The bigger the company, the more they are open to external managers. But for small family businesses an external manager brings high costs and the whole business model isn't working anymore with these costs. DW-TV: But you would say, in general, it is an advantage when family-run businesses go outside and bring new blood into the structure? Stefan Heidbreder: In general, yes. DW-TV: Businesses have been complaining a lot in Germany about a shortage of highly-skilled workers, especially in the engineering sector. Are family business suffering here? &nbspp; Stefan Heidbreder: Yes they do suffer, because right now we have a shortage of more than 66,000 engineers. And family businesses do need highly skilled workers -- more than big names, big international companies. DW-TV: And the shortage is real? Stefan Heidbreder: The shortage is real and family businesses are already taking action to face that. They are more open on the labor market, they are doing better in recruiting -- employer branding and all this kind of stuff. DW-TV: So maybe that would be a good Christmas present for these businesses...more qualified workers for these businesses. Stefan Heidbreder: Yes! DW-TV: Mr. Stefan Heidbreder, thanks very much for coming in and braving the winter to join us! (Interview: Brent Goff)