Germany as a Business Location: Responsibility Beyond Narratives

Germany as a business location leadership is facing increasing responsibility and pressure. Organizations rarely fail due to a lack of ideas. They fail because of unclear structures, mistrust, and systems that prevent effective action. This pattern is currently particularly visible when looking at Germany as a business location.

Family-owned companies are rating the situation poorly. High tax burdens, excessive bureaucracy, and slow approval processes are repeatedly named. This is not ideological rhetoric, but a realistic assessment from daily business practice. Nevertheless, the public debate is often emotional rather than analytical, driven more by blame than by substance.

This reflects a mechanism I describe in my book “Wir sind Fake!”:
When perceived truths become louder than verifiable facts, orientation is lost—both in companies and in politics.

What Germany as a Business Location Is Really Struggling With

From my perspective, and based on numerous conversations with entrepreneurs and senior executives, three core issues stand out.

Bureaucracy Instead of Speed

Complex regulations, lengthy procedures, and unclear responsibilities slow down decision-making. Companies need room to act and speed, not an administrative permanent brake.

Mistrust Toward Entrepreneurship

Many executives perceive a fundamental skepticism toward entrepreneurship and economic success in parts of the media and society. This climate discourages investment and undermines the willingness to take responsibility.

Lack of Planning Security and Legal Certainty

Investment—especially in start-ups, innovation, and transformation—requires reliability. When law-abiding companies must constantly expect retroactive rule changes, legal risks, or regulatory uncertainty, capital becomes cautious.

The rule of law also means clear rules and consistent prosecution of economic crime—but not blanket suspicion toward those who create jobs and value.

What Executives Are Telling Me Most Often Right Now

In my coaching and training work, several themes come up repeatedly—across industries, company sizes, and regions.

High Energy Costs

Many business leaders openly report that relocating production abroad is not an ideological choice, but an economic necessity. Energy prices that are no longer internationally competitive leave little room for investment, innovation, or long-term commitment to the location.

Rising Sick Leave and Exhaustion

Executives describe noticeable fatigue within their teams. Continuous pressure, work intensification, uncertainty, and constant change are taking their toll. This is not an individual failure, but a structural issue—with serious economic consequences, particularly for mid-sized companies.

As I repeatedly observe in my work as an executive coach:
When systems are permanently overloaded, people do not respond with higher performance, but with withdrawal.

Security as a Location Factor Beyond Economic Indicators

One issue has gained particular importance in discussions with business owners and executives: the protection of critical infrastructure.

Attacks on power grids, data networks, or transport infrastructure—such as those recently reported in Berlin—are being closely monitored. The problem is not only that such attacks occur, but how they are addressed publicly.

If acts of sabotage or terrorism are not clearly condemned and actively countered by politicians across party lines, this sends a dangerous signal. When such incidents are downplayed, relativized, or linguistically depoliticized, the impression arises that determination is lacking.

For many entrepreneurs, this leads to a clear conclusion:
Security, stability, and protection can no longer be taken for granted.

This directly affects investment decisions. Long-term planning is not only about tax rates and subsidies, but also about one key question:
How seriously does a state take the protection of its economic lifelines?

Disinformation, Defamation, and Cyberattacks: A Silent Threat

Another often underestimated dimension is targeted disinformation, defamation campaigns, and cyberattacks.

In my book “Wir sind Fake!”, I show how manipulated content, false accusations, and digital attacks can destabilize companies—economically and reputationally. These risks no longer affect only politics or the media. They directly threaten business models, brands, and trust.

A location is only attractive if it offers not just skilled labor and infrastructure, but also communicative, digital, and physical security.

What Makes Germany as a Business Location Attractive Again

From my perspective, four elements are essential:

• Trust instead of generalized suspicion

• Clear and simple rules instead of overregulation

• Speed in approvals and decision-making

• A fact-based, honest debate about risks and responsibility

These demands have been voiced for years—not only by entrepreneurs, but also by business associations and economic institutions such as the Stiftung Familienunternehmen, BDI, and DIHK.

Conclusion

Germany does not lack ideas.

It suffers from mistrust, complexity, and a debate that too often prioritizes narratives over reality.

If we want to strengthen Germany as a business location, we must relearn how to listen, analyze rigorously, and take responsibility—across politics, business, and society alike.

Because communication is not a side issue.
It is leadership task number one.

Yours,
Nikolai A. Behr