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German Crafts Institute Secures €240K to Boost SMEs in 2026

How a €240K grant will transform small businesses in the crafts sector. From tech transfer to vocational training, the DHI bridges research and real-world success.

The image shows an old German stock certificate with a green border and text written on it. The...
The image shows an old German stock certificate with a green border and text written on it. The text reads "Niesen-Bahn-Gesellschaft" and the certificate is likely a stock certificate issued by the German government.

German Crafts Institute Secures €240K to Boost SMEs in 2026

The German Crafts Institute (DHI) has secured €240,281 in core funding for 2026 from the Ministry of Economic Affairs, Labour, and Tourism. This financial support will help the institute continue its work in applied research and practical trade promotion for the crafts sector.

The DHI operates through five regional institutes, acting as a link between research, business, and policymaking. Its focus spans technology transfer, business management, economic policy, and vocational training.

The DHI's mission centres on bridging gaps between theory and real-world application. Its five regional branches connect research findings with the daily needs of small and medium-sized enterprises (SMEs). Funding for the institute comes from multiple sources, including the state of Baden-Württemberg, the German Confederation of Skilled Crafts, and the Federal Ministry for Economic Affairs and Energy. All 16 federal states contribute, alongside third-party funded projects.

One of the DHI's key partners is the Institute for Business Management (itb) in Karlsruhe. The itb specialises in research tailored to SMEs, offering them access to the latest business strategies. Through seminars, training programmes, and digital learning tools, the itb helps companies build skills for long-term success. Both institutes work to ensure that research insights reach businesses in practical, actionable ways.

The DHI's broad funding base reflects its wide-ranging impact. While Baden-Württemberg and Berlin are confirmed contributors, the exact number of other states involved in 2024 remains unspecified. The institute's role in technology transfer, legal advice, and vocational training ensures that crafts businesses stay competitive in a changing economy.

The €240,281 grant will support the DHI's ongoing projects in 2026. By combining research with hands-on business support, the institute helps SMEs adapt to new challenges. The funding ensures that its regional branches can continue serving as a vital connection between policymakers, researchers, and the crafts sector.

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