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Firstly, the end of comprehensive globalization.��Protectionism no longer only affects flows of goods, but��increasingly money and capital, information and data, as��well as people and know-how. In the name of national��security, the world is being covered with a network of��investment restrictions and sanctions. For companies,��access to new markets, new ideas and new employees is��thus considerably restricted. Accelerated consolidation is��likely to be the result.

Secondly, the end of cheap labor. For a long time,��globalization was synonymous with a steady expansion��of access to production factors, especially labor. This is no��longer the case. Demographic change means a shortage of��(skilled) labor worldwide. The war for talent is reaching a��new level. Medium-size companies in particular will find it��difficult to survive here. While large companies are favored��by their brand and benefits, smaller businesses can score��with their greater self-determination and entrepreneurial��spirit. Stuck in the middle is the worst place to be.

Thirdly, the end of innocent technology. There have always��been warnings about the negative consequences of new��technologies. And with regard to the internet and social��media, many fears have now unfortunately materialized.��With artificial intelligence (AI), however, the potential��danger has reached a new dimension. As a general-purpose��technology, AI will fundamentally change every��industry and area of life. The contours of AI-powered��societies and economies remain unclear at this stage;��consequences are difficult to assess. But if last year’s��market development is any indication, one mundane��conclusion can be drawn: AI is likely to lead to greater��market concentration as the upswing in the US stock��market in 2023 was mainly driven by a handful of tech��giants – fueled by the AI fantasy about their profits.

“These three drivers have a simple message for the��majority of SMEs: market challenges will multiply in��the new age. Worries are not misplaced,” says Ludovic��Subran, Chief Economist at �ǿմ�ý.