The skilled craft sector is the most varied in the German economy and its SMEs form the traditional backbone of business in Germany. In 2001, there were almost 5.7 million employees working in around 851,000 firms, which was also training more than half a million apprentices. In other words, the skilled crafts sector accounts for almost 15% of all those in employment, and for around 34% of all apprentices. As such it trains far more apprentices than are actually required, thus providing other business sectors with a steady stream of qualified junior staff. In 2001, sales in the skilled crafts sector totaled Euro 509 billion.

In the Federal Republic of Germany, the skilled crafts sector is made up of all those firms which practice one of 94 trades, from bricklaying to violin building. As opposed to most other European countries, in Germany being a skilled crafts company is not dependent on the size of the operation, the number of employees or the amount of sales generated.

Some provisions relating to the skilled crafts sector are anchored in law. As an example, a master craftsman's diploma entitles the holder to practice a skilled trade, providing him with the requisite practical and business skills to run such a firm. It entitles the holder to manage a company on his own and to train apprentices. In future, however, this particular provision will apply only to those trades in which insufficient skilled training could endanger the common weal, for example, electricians.

The independent professions form an important part of the German SME sector. At the beginning of 2002 there were around 761,000 self-employed persons in the independent professions in Germany. Those working in healthcare professions, in other words doctors, dentists, vets, pharmacists and therapists still formed the largest contingent, about 35%. The second largest group, comprising around 202,000 members, is made up of legal, business and tax consultants such as attorneys, tax consultants, certified public accountants and management consultants. With regard to technical independent professions, architects and consultant engineers made up the greater part of the 133,000 members. Some 161,000 members working in professions in the cultural domain make up the fourth largest group. Those registered as being self-employed themselves provide work places for some two million people. The more than 157,000 apprenticeships they offer make them the single largest provider of training opportunities following the skilled trades, industry and commerce.

At the end of June 2005, the number of persons employed in the compulsory approval crafts sector was down 3.5% on June 2004. At the same time, the turnover of crafts entrepreneurs in the second quarter of 2005 was 0.8% above the level of a year earlier.

Common to all independent professions is the fact that they provide the population and the business community with important services involving advice, assistance, care and representation, on their own responsibility and not under instruction from third parties. Over and above working for their own personal gain, the members of the independent professions are under a special obligation to serve the interests and welfare of society as a whole.