Hidden champions strengthen the location
Black Forest Power Region is one of the top 5 world market leader regions according to the study
The Black Forest Power Region is excellent: this is the result of a study by Dortmund University of Applied Sciences and Arts, which was commissioned by the regional business development agency nectanet. The study recognized 43 companies as hidden champions. From June 1, Der Guller will be presenting these “pearls of the economy” in a series.
“What we already knew before the study was that there are many global market leaders in our region,” explains Dominik Fehringer, Managing Director of nectanet. However, most companies that could hold this title would not like to use it. On the one hand, because world market leadership is sometimes only based on one product, and on the other hand because there is uncertainty about the term in principle.
This is different with the term hidden champions: it was introduced into the academic debate by Hermann Simon in the 1990s. Simon also defined the criteria that make up a hidden champion (see info box). “The study was led and conducted by none other than Prof. Dr. Jan-Philipp Büchler, whose intensive research on hidden champions is a worthy legacy of Hermann Simon,” says Fehringer.
Successful communication
For the companies, it’s all about successful communication. “As a rule, hidden champions do not have a strong brand presence outside their specialist sector,” explains the nectanet Managing Director. “The award is a real benefit for the companies – an honorable thank you to the owners and managing directors, but also a congratulations to all employees and a clear signal to customers, suppliers and all other partners.”
The region as a whole also benefits from this initiative. “We want to make excellence visible and use the hidden champions theme to communicate the Black Forest Power Region,” emphasizes Fehringer. “This has a decisive impact on the perception of our region – both internally and externally. That’s why I’m delighted about this major series, which highlights all 43 hidden champions.” The awards are currently being presented: “I hear that the workforces and communities of the award-winning companies are reacting very positively. And there have already been the first applications as a result – a useful side effect.”
As hidden champions, the companies are figureheads of the region and therefore key players in location marketing. “I am grateful when the hidden champions work together with the many other fantastic companies at Black Forest Power Region to strengthen the location,” says Dominik Fehringer. This is possible in many ways, especially through participation and a high level of activity in nectanet’s location marketing measures and networking events: “The municipalities and their political representatives are also important players in this.” According to Fehringer, this cohesion is more important than ever: “International competition for investment, start-ups, science and workers has never been as tough as it is today.” Without cohesion, the challenges could not be mastered. GRO
Hidden champions
There are defined criteria for classification as a hidden champion:
The company is either number 1, 2 or 3 worldwide in its market or number 1 on a continent.
The companies are little known to the general public, although they are often very successful. As a rule, they do not have a strong brand presence outside their specialist sector.
The companies are medium-sized, mostly with a turnover of less than five billion euros and fewer than 5,000 employees.
Hidden champions are characterized by a high level of innovation, customer proximity, international orientation and often long-term thinking – often family-owned or owner-managed.
With a total of 43 scientifically recorded companies, our region stands out with its unique density of hidden champions. According to the study, Black Forest Power Region has a total of ten hidden champions per 100,000 inhabitants. GRO
Special foundation for innovative strength
“The high density of hidden champions is truly remarkable,” says Prof. Dr. Jan-Philipp Büchler, head of the study. “With around ten hidden champions per 100,000 inhabitants, Black Forest Power Region is one of the top 5 world market leader regions in Germany.” It is surprising that the companies are not only located in the centers along the economically important Rhine, but that around half of the world market leaders can be found across the entire breadth of rural areas.
Historically grown
This high density of hidden champions at Black Forest Power Region is no coincidence, but the result of a historically grown, regionally embedded innovation ecosystem. “It combines tradition with cutting-edge technology, regional roots with a global market presence,” says Büchler. The industrial structure and culture has developed since the 19th century through a multitude of small-scale and highly specialized company structures, such as in the watch industry.
“Quite a few of them have their origins here – so it comes as no surprise that the hidden champions in the region are older than average and experienced in the best sense of the word,” explains Büchler. This industrial heritage is a special foundation for innovative strength. “Family businesses rooted in rural areas think in terms of generations, focus on research and development and are an anchor of stability for the region,” says Büchler.
Brigitta Schrempp: “The award is an accolade for the companies”
“First of all, I think nectanet’s initiative is excellent,” says Brigitta Schrempp, Chairwoman of the nectanet Economic Advisory Board, praising the study. “For the companies that are recognized as hidden champions, this is an accolade. They benefit directly from the initiative, but it also benefits all other companies and the entire region.”
The entrepreneur includes local authorities in this. “Investors and founders focus on economic powerhouses,” says Schrempp. “If we are the top 1 region for hidden champions in Baden-Württemberg, then that is a real asset for Ortenau.”
The hidden champions also have an impact on the next generation of entrepreneurs. “As a young entrepreneur, you don’t make a mistake if you model yourself on these successful companies,” says Schrempp. “Success doesn’t come by itself. With all hidden champions, they encounter similar virtues behind the scenes: Diligence, curiosity, courage, a sense of responsibility, a spirit of innovation, strong leadership and a lot of discipline and perseverance.”
To ensure that companies can continue to operate successfully, Brigitta Schrempp wants one thing above all: “Accessibility in the figurative sense. Entrepreneurs need legroom. We need the state to focus on its core tasks, a reduction in the state quota and, as a result, renewed confidence in the ability of the economy.”
Pulling together
Nevertheless, it is important that local politicians support the economy. “Our active network is what makes the region so strong for companies,” says Gregor Bühler, Chairman of the Supervisory Board of nectanet GmbH and Lord Mayor of Oberkirch, confidently. “We see it as our task to continue to offer the best conditions for this positive economic development in our region in the future.” The ace of the region is that people know each other and exchange ideas. “The fact that people from politics and business exchange ideas here is not a matter of course. It is also the result of years of hard work by our regional economic development agency,” said Bühler.
He sees economic development as a public task: “In principle, all municipalities have a great interest in healthy economic development.” nectanet brings together many players in the region on behalf of the local authorities and conveys the strength of the region to the outside world in a bundled manner and with modern and sophisticated location marketing: “No local authority could achieve this alone,” Bühler is certain. GRO
53 shareholders and 200 companies form nectanet