A microscope on small businesses: The productivity opportunity by country
Year: 2024
Content-Type: Report
Description: The recent McKinsey Global Institute report A microscope on small businesses: Spotting opportunities to boost productivity estimated that micro-, small, and medium-size enterprises (MSMEs) account for two-thirds of business employment in advanced economies— and almost four-fifths in emerging economies—as well as half of all value added.1 In this research, MGI aggregated a richly granular data set of MSMEs and large companies across 12 broad sectors, 68 level-two subsectors, and more than 200 level-three subsectors for 16 countries that account for more than half of global GDP. In these countries, MSMEs on average have only half the productivity of large companies, and less than that in emerging economies. Raising MSMEs to top-quartile levels relative to large companies is equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies.
Pages: 136 pages
Author: Anu, Madgavkar; Marco, Piccitto; Olivia, White; María Jesús, Ramirez; Jan, Mischke; Kanmani, Chockalingam
Categories: Development, Economic Development / Stability, Microfinance, Publications, SMEs
Tags: Development, Microfinance, SMEs