Entrepreneur Expects Many Insolvencies to Continue - Lower Saxony braces for small business crisis and job cuts in 2023
Business leaders in Lower Saxony have warned of rising insolvencies and job losses in key industries. Benedikt Hüppe, president of the UVN business associations, expects no improvement in company failures this year. The region’s economic outlook remains uncertain, with further challenges ahead for employers and workers alike.
An estimated 70 out of every 10,000 small businesses in Lower Saxony are predicted to file for insolvency in 2023. Hüppe has stressed that there are no signs of a turnaround in these figures. He also ruled out any near-term decline in small business closures across the region.
The automotive sector, a major employer in Lower Saxony, is likely to see additional job cuts. While no specific companies were named, Hüppe highlighted broader struggles in the industry. He pointed to demographic shifts as another pressure point, arguing that longer working lives will be necessary due to rising life expectancy. To counter economic challenges, Hüppe called for greater investment in emerging technologies. Quantum computing was singled out as a potential growth area for the region. His comments reflect concerns over stagnation unless new small business ideas are developed.
The warning from UVN comes as Lower Saxony braces for sustained insolvency rates and further reductions in automotive jobs. Hüppe’s emphasis on future-focused sectors suggests a push for structural change in the local small business landscape. Without intervention, the region’s small business landscape could face prolonged difficulties.
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