German family firms confront succession shortage, women touted as future leaders

Germany's Mittelstand faces a looming succession gap, with an estimated 109,000 family businesses needing new owners each year through 2029. Many proprietors consider exiting because no heirs are available, threatening the sector that underpins the national economy. Women currently lead only 18.4% of the 3.2 million family firms, yet experts argue they can drive modernization, digitalisation and challenge entrenched gender norms. PwC partner Christine Flath notes, “Women are not lacking drive; it is a structural legacy that holds them back,” while the UnternehmerTUM programme at the Technical University of Munich is actively mentoring female successors.

A related study shows that merely 36% of German family enterprises have a family constitution, though 59% recognise its value for cohesion and governance. Companies with such constitutions report stronger family unity (72%) and more robust control structures (66%). Conversely, firms without one assess their arrangements far less favourably (25% vs 74%). Around 45% of firms lacking a constitution intend to adopt one within the next five years, aiming to safeguard continuity and stability.