Survey: 20.6% of self-employed in Germany say finances are at risk as orders dry up
Survey finds 20.6% of self-employed in Germany fear their finances amid rising order shortages; business climate in April 2026 fell to a new low, prompting calls for swift action.
More than one in five self-employed people in Germany say their financial future is at risk because of a shortage of orders, according to a monthly survey conducted by the ifo Institute with Jimdo in April 2026. The poll found 20.6 percent of respondents judged their economic situation as threatened, while 48.4 percent reported receiving too few orders that month. The findings underline growing strain among solo entrepreneurs and microbusinesses in the service sector and have sharpened calls for government measures to stabilize demand.
20.6 percent of self-employed describe their situation as threatened
The ifo Institute survey, carried out in April 2026 among roughly 1,800 solo self-employed individuals and microbusinesses with up to nine employees, reported that 20.6 percent view their financial prospects as precarious. That figure is more than double the share in the broader economy, where just 8.1 percent expressed the same level of concern. Analysts and representatives say the gap highlights particular vulnerabilities faced by independent contractors and small service providers during periods of weak demand.
The proportion citing a threatened outlook reflects both immediate cash-flow worries and fears of a longer downturn in client work. Respondents identified insufficient orders as the central driver of their concern, rather than a sudden rise in fixed costs or regulatory changes.
Nearly half of respondents reported too few orders in April 2026
In April 2026, 48.4 percent of the surveyed self-employed said they did not receive enough orders to sustain their operations, up from 46.6 percent in January 2026. The increase signals a continuing deterioration in demand for services provided by freelancers and very small firms. For many, the shortfall in assignments has meant reduced working hours, postponed projects and delays in invoice payments.
The imbalance between supply and demand is especially acute among solo operators who lack buffers such as retained earnings or access to short-term credit. Several respondents in the survey described clients delaying decisions and scaling back spending, which has compounded immediate revenue shortfalls.
Business climate index drops to new low in April 2026
The survey’s business climate indicator fell sharply, sliding from minus 20.8 points in March 2026 to minus 29.9 points in April 2026, marking a fresh low for the series. Both current assessments and forward-looking expectations contributed to the decline, with respondents reporting more negative judgements of their present situation and weaker outlooks for the coming months. The fall in the barometer suggests that pessimism is spreading among small-scale service providers.
Economists say the plunge in the index reflects a combination of lower client demand and heightened uncertainty about the broader economic trajectory. Lower expectations in turn can feed back into reduced investment and hiring by small firms, prolonging a cycle of weakness.
Uncertainty is rising among solo entrepreneurs and microbusinesses
Uncertainty about future business developments has grown: 38.8 percent of surveyed self-employed said they found it difficult to assess their future prospects in the current economic environment in April 2026, up from 36.4 percent in March 2026. The rising share points to volatile planning horizons for freelancers and microbusiness owners, many of whom depend on a small set of clients or on project-based income.
This uncertainty complicates decisions about hiring, investment and debt management, leaving many operators to focus on short-term survival rather than growth. Service-sector firms, which make up a large share of the sample, reported particular difficulty in forecasting demand because changes in consumer confidence and corporate expenditure directly affect assignment flows.
VGSD calls for immediate, low-cost policy measures
The Association of Founders and Self-Employed in Germany (VGSD) responded to the survey by urging fast government intervention. Andreas Lutz, the VGSD chairman, warned that policymakers must not lose further time and said targeted, low-cost measures could provide relief to self-employed people and microbusinesses. The association proposed steps to boost demand and ease short-term liquidity pressures without broad, expensive programs.
Advocates point to options such as temporary tax relief, streamlined support for small contracts, or incentives to stimulate private and corporate spending on services. They argue such measures could shore up orders quickly and be implemented more rapidly than large-scale fiscal packages.
Survey scope and methodology
The ifo Institute conducts the indicator in partnership with Jimdo on a monthly basis, polling roughly 1,800 solo self-employed and small companies with up to nine employees. The survey focuses primarily on the service sector, where freelance and microbusiness arrangements are most common. Responses are used to track shifts in order volumes, sentiment and short-term expectations across this segment of the economy.
IFO’s regular sampling allows analysts to compare month-to-month changes and to identify emerging trends specific to very small businesses, which are often underrepresented in broader business surveys.
The survey’s results add to a wider picture of subdued demand in parts of the German economy and the particular exposure of small service providers to order fluctuations. Stakeholders from trade associations to policymakers say the next weeks will be critical for designing measures that stabilize cash flows and restore confidence among the self-employed.
Raising demand and restoring predictability for small-scale service providers will be essential if policymakers are to prevent a longer contraction among solo entrepreneurs and microbusinesses in Germany.
