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The book examines the culture and conduct of six small and medium-sized enterprises (SMEs) in the West Midlands of England and Baden-Württemberg in West Germany from 1945 to the late-1970s, drawing on numerous business archives in both Germany and Britain. The German companies studied formed part of the Mittelstand, the family-owned sector which is unique to German- speaking countries. Mittelstand companies, which make up today 99 per cent of all German businesses and are often export-oriented, are said to operate according to well-defined principles, including the emotional attachment of their owning family: a close identification with the surrounding region; a patriarchal culture within a 'family' atmosphere; an independent mindset; and the development of high-quality, niche products that achieve market-winning positions at home and abroad. This book explores whether those principles were adopted in practice then, and whether they are still applicable today. The British SMEs are examined to understand how their approach differed from that of their German counterparts. For both countries, the 'ecosystem' which surrounded businesses is examined, paying particular attention to funding and vocational education. The book concludes that the potential for a British Mittelstand existed, but that British companies were often less well managed and had to operate within a less supportive external environment than that which favoured the Mittelstand.
This is the first book-length study that examines the detailed histories of SMEs in a comparative, transnational manner. Historical lessons learned from the management of these companies still resonate today, and can help us to understand contemporary differences in business performance. The book's concluding chapter considers whether Mittelstand principles still offer a model for sustainable, stakeholder-centred, purpose-driven business in the twenty-first century.