We don't need startups, we need Digital-Mittelstand

Yes, that. I regularly travel from Sweden to the Netherlands by train and have gotten into the habit of sending a message from Padborg (Danish-German border) that I'm about to enter Germany so I might not be able to react or have data access for the next 7-8 hours. Coverage is spotty at best, totally absent at worst. This seems to be more pronounced in northern Germany, the west is a bit better but still bad compared to my origin (the Nordic countries) and destination (the Netherlands).

Quo Vadis, wirtschaftswunder? Werden wir es wirklich schaffen?

The authors examples of “Digital Mittelstand” companies are not businesses at all but tiny “creator economy” side projects.

These do not scale to 30% of GDP in the same way high value B2B industrial equipment does (in manufacturing you happily pay $100,000 for a piece of machinery because it can turn inputs into more valuable outputs at scale).

Instead of coming up with incorrect ideas about what the government should “encourage” from the top down, what if European elites focused on cooperating more with their neighbors to open more opportunities and meanwhile let the peasants (the market) figure out the most productive and profitable uses of their time.

If Europeans can’t figure out new valuable areas where they can contribute to the world, than their system isn’t as clever or morally righteous or fantastic as they think it is. I believe if allowed the opportunity, the people would find this positive-sum value to be created. Who do you think founded all the Mittelstand in the first place?

I am sure that there are a large number of small business in the field, anayway. It's not a "either or" proposition, either.

The article comes across as naive and idealistic. This was especially odd: "The average German—apart from those who’ve left the country and morphed into “tech bros”—isn’t particularly moved by shareholder value, especially when the Basic Law of Germany begins with “Human dignity shall be inviolable."

I agree with the proposoal to simplify and regulations but this is easier said that done because these are cultural aspects.

The idea that you should be able to start a business without risks or hard work is also perhaps more part of the problem than of the solution:

"A government program could provide salary grants based on experience, allowing these individuals to dedicate time to developing a digital product without compromising their quality of life or financial stability.*"

I would also think that someone who lives and work in Germany ought to be speaking German and would not require the German state to provide paperwork to start a company in English.

Lastly, regarding VAT exemption thresholds we perhaps need to look at the root cause of those exemptions and calls for higher thresholds: VAT rates in Europe are ridiculously high and that is in turn caused by the size of the state.

Screws are probably primarily not a B2C product , and screw producers probably integrate with their customers' systems and processes in non-trivial ways. I don't know enough about screws to make this concrete.

If there's no market for libraries and frameworks (like there used to be), the next best equivalent appears to be SaaS and software you can buy and run/host yourself. Germany seems to be doing pretty good there, considering SAP.

The problem I see is primarily that most software businesses aim to get out of their niche. I suppose a screw maker is perfectly content just being the number one in screws. A software business is rarely that focused: Better to do a lot of things OK than one thing great. Marketing and sales are the big levers, not quality. Probably because software is largely being sold to people who can't even judge their quality and mostly buy based on vibe. Software is, after all, a pop culture.

So if every piece of software gravitates towards being everything for everyone, and if marketing (money) is the big lever, it's a lot more of a winner takes all environment. That's an excellent environment for strong hustlers. It's a terrible environment for quiet people that care about quality.

Yes, but this already happens, just not in the hn/reddit echo chamber. Most people are not looking/shooting/wanting to fight for billions$ or market leader or whatever; most are happy with a nice life making stuff for local companies. There are tons of regional companies making software/saas/services just in their part of the country (whatever country) and making a nice living for decades.