In this post, I elaborate on why, if given the choice, I would avoid working for the Mittelstand and seek opportunities elsewhere that offer fair compensation, growth potential, and a supportive work environment.

If you search for ‘Mittelstand’ on Wikipedia, you will get the following description:

Mittelstand commonly refers to a group of stable business enterprises in Germany, Austria and Switzerland that have proved successful in enduring economic change and turbulence. It is usually defined as a statistical category of small and medium-sized enterprises with annual revenues up to 50 million Euro and a maximum of 500 employees.

The German Mittelstand is perceived by some as a scam due to several reasons:

Exploitative Practices: Many Mittelstand companies are known for offering low wages, minimal benefits, and precarious job security, exploiting their employees while claiming to support the local economy.

False Patriotism: They often market themselves as pillars of national pride and economic stability, yet they may not uphold fair labor practices or contribute significantly to societal welfare.

Limited Growth Opportunities: Compared to larger corporations, Mittelstand firms may offer fewer opportunities for career advancement, innovation, and professional development.

Resistance to Change: Some Mittelstand companies may resist modernization, technological advancements, and global integration, which can limit personal growth and adaptability in the workplace.

The primary issue I have with these types of enterprises, aside from the fact that many are producing uninspired and boring products, lies chiefly with their proprietors.

These individuals claim to be the driving force behind the German economy while simultaneously exploiting their workers. They lobby against the implementation of a minimum wage, arguing that such a measure would render their businesses unprofitable. Well, if you have a subpar business model or a product that no one wants to buy, then perhaps, just perhaps, you shouldn’t be in business. I mean, what would you say if I walked into your store, stole a bunch of items, and simply said, “Sorry, pal, but if I had to pay for these, my bank account balance would decrease”? After all, how are other companies, like Google or McKinsey, able to pay minimum wage while operating in the same country and environment?

Perhaps the owners should consider selling their numerous villas in Starnberg and their Porsches to invest the proceeds back into their businesses. Alternatively, they might close up shop and work as employees themselves. After all, they constantly tell their workers that working for them is a noble service to Germany, helping to keep the economy running.

Which brings me to the next issue: they keep trying to sell their workers on a vision that simply doesn’t exist. Let’s be honest, you produce screws and plastic straws. Don’t try to sell me on some grand vision and use that as an excuse to lowball my salary. They offer no benefits, pay only the minimum wage, provide the bare minimum required holidays, and fire employees on the spot if they call in sick too often, all while using the excuse that working for them makes you a true German patriot. They argue that, unlike global giants like Amazon, they don’t exploit the German tax system but instead contribute to increasing the GDP. I call bullshit on that one. They are just as opportunistic as the Jeff Bezoses and Elon Musks of the world, only far less successful. If given the chance to expand like them, they wouldn’t hesitate for a second.

Finally, they present themselves as staunch free market advocates, often repeating “Der Markt regelt sich selbst” (The market regulates itself), only to cry and beg for government subsidies and bailouts when economic conditions turn unfavorable. It’s as if I could start a business selling used condoms and then demand government support when my product doesn’t sell. I thought you were all in on the free market idea?

I would rather work for mega-corporations like Google or Apple instead. Sure, they might also fire you on the spot or exploit their workers in some other ways, but at least I’d have a prestigious brand name on my resume for future applications, work on more interesting products, and build a comfortable safety cushion with my non-minimum wage salary.