Small and Medium Enterprises

Small and Medium Enterprises (SME's) employed around 4.8 million people in the private sector throughout the years 2008-2009 and they contribute over 34% of private industry value (Department of Innovation; 1.) Small Businesses represent over 96% of total businesses (www.small business.wa.gov.au) and more then 1 230 282 small businesses owners work on their own, without staff or a support team.

It is becoming widely accepted that small and medium businesses are the way of the future, with more and more people believing that they could be the next big idea or just wishing to make their dreams come true.

Today's Small Business is generally described as a business that is independently owned and operated, is closely patrolled by owners or managers who also contribute most, if not all the "operating capital" (www.small businesses.wa.gov.au) and lastly, the principle decision-making functions rest with those same owners or managers. In relation to size, most Small Businesses would be considered so if they had 100 or less employees (Lobmayer; pg 10) but as the majority of Small businesses in Australia are not of this size, the term Micro Businesses was introduced which describes Businesses with 5 or less employees (Lobmayer; pg10.)

What is now becoming more apparent is the process of expansion of these Small Businesses and the "growth" process they go through from a very Small Businesses enterprise into a Medium Enterprise.

The Medium Enterprise usually comprised of between 100-500 employees (Canada) but this depends on what country and jurisdiction you reside in, with a growth-orientated approach (Riba; pg11) make there most tangible contribution to economic growth and job creation. They do this in two ways, firstly they are leading sub-contractors and are venture firm in their own right, but they also tend to create jobs that yeild higher returns then small SME's so they last longer, therefore multiplying their impact on economic growth.

Some examples of growth SME's could include:

References:

Australian Government, Department of Innovation, Industry, Science and Research, Key facts - Small Business.

Small Business Development Corporation, "Small Business Facts and Stats" www.smallbusiness,wa.gov.au/what-is-small-business

Riba, Matfobhi. "National Policies and Measures for Growing Micro and Small Enterprises...," Government of the Netherlands

Mason, C M, and R T Harrison. 2001. "Investment Readiness." A Critique of Government Proposals to Increase the Demand for Venture Capital. Regional Studies 35. No. 7: 663-668 www.informaworld.com