Can the Mittelstand go global, go green, and go AI? EY’s Jan Brorhilker busts myths about Germany’s quiet powerhouses.

In this episode of The Optimist, Jan Brorhilker, Head of Assurance at EY Germany, pulls back the curtain on the Mittelstand – Germany’s often misunderstood economic powerhouse. As Jan puts it, “They're not slow. They're just very smart.” From century-old manufacturers to startup-savvy investors, Jan shows how family-run, carefully built firms are not relics of the past but agile players with a long-term mindset.

Brorhilker busts five persistent myths about the Mittelstand, including the idea that they resist change, can’t scale, or don’t care about AI. In fact, he reveals, “Everyone talks about AI. Few know what to do. Mittelstand just tries it – quietly.” With over 96% of Germany’s exports driven by these mid-sized firms, Jan makes a bold case: “That’s not regional. That’s global.” He shares how many Mittelstand companies are building stealth startups in Berlin, adopting remote work, and investing in innovation – without press releases.

At the same time, Jan doesn’t shy away from hard truths. He challenges the rising weight of red tape, warning, “Bureaucracy is rising like inflation. Small companies still find ways to move fast.” And while he’s bullish on the entrepreneurial spirit—“We underestimated the entrepreneurial spirit of German families. They’re still outperforming Europe” – he’s clear-eyed about what must change: energy costs, labor laws, and digital inefficiency.

The Optimist is presented by TECH by Handelsblatt Media Group and independent from the Handelsblatt editorial team. With the Technology Experience Convention Heilbronn (TECH), Handelsblatt Media Group, Handelsblatt and Schwarz Digits are creating a strategic platform to strengthen the European tech ecosystem. TECH‘s mission is to establish a „cluster of optimism“, connecting Europe’s most influential leaders across technology, industry, politics, and academia. More at tech-europe.org