ABSTRACT
A specific institutional framework has contributed to the fact that the small firm sector of the economy has been able to hold a comparably strong position in the Federal Republic of Germany. It is demonstrated that although the ongoing industrial restructuring process provides new opportunities for small firms, there are certain structural developments which in long run may contain disadvantages for employment and quality of work in this sector. The data give an impression of the significance of the small-scale company sector in Federal Republic of Germany. Since a large proportion of industrial training takes place in craft and small-scale firms, the small firm sector always was able to gain access to skilled workers, despite the migration of the skilled labour force from the craft and small-firm sector to large industrial firms. It would appear as if in the particular branch, the small-scale businesses have not been able to capitalize on the trend toward more individualized and diversified quality products.
