Tribune. The German term of “Mittelstand” refers to the large population of family businesses that form the backbone of the German economy. The term is not equivalent to what we in France call SMEs and ETIs (mid-size companies). Because the Mittelstand is not a statistical concept. It is a cultural notion that is based on principles often set up as values.
The first of these principles is strategic focus. the Mittelstand does not like diversification and remains focused on a technical profession. The “hidden champions” are positioned in a niche where they excel in being able to sell their products around the world, although they remain unknown to the general public. It is not uncommon to hear a leader of the Mittelstand affirm that he does not seek to be a leader, but to “do his job as best as possible”.
The second principle is the search for balanced development, the polar opposite of the start-up. Here, no exponential growth or systematic appeal to investors. The rate of growth is conditioned by self-financing capacities. The manager of a company more than a hundred years old from Mittelstand will almost apologize for not growing up faster. But he will underline his attachment to growth that respects the major balances of the company.
Finally, the Mittelstand takes care of the unique intangible asset that constitutes its relational capital, namely its interactions with employees, unions, customers, suppliers, development partners and regional stakeholders. Large companies in Mittelstand do not have their seat in Berlin or in a Land capital, but in a small village or in the middle of the countryside. They irrigate the territories, attract and train young local talents.
An efficient model
Having the opportunity to intervene on both sides of the Rhine, I can attest to this: the Mittelstand French exists, even if it is less dense and meshed than in Germany. And he has nothing to envy Mittelstand German in terms of humanity, industrial genius, strategic ingenuity and commitment to the territory.
So let’s stop rehashing the complaint of “three times more mid-sized companies in Germany than in France” and asking ourselves how to transpose the Mittelstand in France ! Instead, let’s identify the tracks to give even more visibility and robustness to the Mittelstand French.
First, let’s teach the model Mittelstand in our management schools, which remain dominated by Anglo-Saxon models and by the figure of big business. No surprise if the students are oriented primarily towards large groups or start-ups. However, even if it is mistreated today by the challenges of transmission, the emergence of digital technology or the profound transformation of sectors such as the automobile, Mittelstand remains an efficient and attractive development model.
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