Study by World Trade Organisation gives leg up to small business
SMEs are behind the lion’s share of employment opportunities, writes Roberto Azevêdo
Small and medium-sized enterprises (SMEs) are essential to the economic performance of nearly every country in the world. They are responsible for the largest share of employment opportunities in developed and developing countries. In SA, micro, small and medium-sized enterprises are estimated to have created 90% of jobs between 1998 and 2005, and generated about 42% of economic output by early 2015. However, while these companies are very visible in the domestic economy, they are not nearly as prominent in the global marketplace. In developed countries, smaller companies comprise 78% of exporters, but ship only 34% of total exports. In developing countries, the situation is even more striking. A survey of 25,000 smaller enterprises in developing countries found exports constitute just 7.6% of their total sales. In Africa the figure is 3%. Some trade barriers affect SMEs disproportionately, and the smaller the business, the bigger the barriers can seem. Meeting required legal standa...
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