SMEs, Age, and Jobs: A Review of the Literature, Metrics, and Evidence

Aga, Gemechu A.; Francis, David; Meza, Jorge Luis Rodriguez

doi:10.1596/1813-9450-7493

Cited by 70 publications

(39 citation statements)

References 17 publications

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“…SMEs are also said to be responsible for driving innovation and competition in many economic sectors. Although they create more jobs, there is also a majority of job destruction/contraction [8].…”

Section: A Small and Medium Enterprises (Smes)mentioning

confidence: 99%

Ease of Doing Business in East Indonesian Region: Starting a Business Study in North Sulawesi Province SMEs

Kawung¹,

Elim²,

Rompas³

et al. 2019

Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)

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A study conducted by the World Bank on Ease of Doing Business for starting a business shows that the business environment in Indonesia is still not conducive to the growth of the trade and industry sector because of the high cost of starting and operating a business. This is because Indonesia faces many problems of formality and complicated procedures that need to be passed, especially in starting a new business. The research objective is to conduct an empirical study of ease doing business, especially starting a business in small and medium enterprises (SMEs) in the Eastern Indonesia Region. The study was conducted in 12 districts/cities in North Sulawesi Province. The research method used is descriptive and qualitative method to several businesses in the form of interviews. The results show that there has been a positive change in ease of doing business especially starting a business in this region.

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Section: A Small and Medium Enterprises (Smes)mentioning

confidence: 99%

Ease of Doing Business in East Indonesian Region: Starting a Business Study in North Sulawesi Province SMEs

Kawung¹,

Elim²,

Rompas³

et al. 2019

Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)

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“…2 Definition of firm age: The definition of firm age is more standardized across studies (e.g. Aga et al, 2015;Ayyagari, Demirgüç-Kunt and Maksimovic, 2014;Criscuolo, Gal and Menon, 2014;Haltiwanger, Jarmin and Miranda, 2013;Rijkers et al, 2014). Therefore, firms are defined as: young (0-5 years), mature (6-10 years) or old (11+ years).…”

Section: Definition Of Firm Sizementioning

confidence: 99%

“…When it comes to employment dynamics in the formal sector, the focus of this report, numerous studies have documented the importance of SMEs in economic growth and employment creation. Birch's seminal study found that SMEs were the major job creator in the United States (Birch, 1979), and subsequent studies have highlighted the important contribution of SMEs to employment levels and growth in developing, emerging and developed economies (Ayyagari, Demirgüç-Kunt and Maksimovic, 2011;Aga et al, 2015;Criscuolo, Gal and Menon, 2014). Estimates for this report based on 132 economies show that SMEs' share of total full-time employees in the formal sector increased by 3.6 percentage points between 2003 and 2016, from 31.2 per cent to 34.8 per cent (figure 1.5).…”

Section: The Share Of Total Employment In Smes Is Growingmentioning

confidence: 99%

“…Although theory suggests that there is no relationship between firm growth and firm size, 17 empirical findings are rather mixed. Some suggest that once a firm's age is taken into consideration, there is indeed no relationship between firm size and employment growth (Haltiwanger, Jarmin and Miranda, 2013); but other studies show that smaller firms grow faster than larger firms, even after controlling for firm age (Aga et al, 2015;Ayyagari, Demirgüç-Kunt and Maksimovic, 2014).…”

Section: B Enterprise and Employment Growth: Who Creates And Destroymentioning

confidence: 99%

“…18 Although these limitations can hamper our understanding of the process of creative destruction in a market economy, where obsolete firms are replaced by more productive ones, the analysis on the intensive margin of business dynamics (i.e. upscaling and downsizing of the incumbents) is certainly informative, as several studies have been conducted on this topic (Aga et al, 2015;Ayyagari, Demirgüç-Kunt and Maksimovic, 2014;Criscuolo, Gal and Menon, 2014). 19…”

Section: B Enterprise and Employment Growth: Who Creates And Destroymentioning

confidence: 99%

See 2 more Smart Citations

Enterprise dynamics and employment growth

Corley-Coulibaly¹,

Kizu²,

Manrique³

et al. 2017

World Employ Soc Outlook

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This chapter investigates how employment outcomes vary with respect to firm size, age and sector and over time. It provides an in‐depth analysis of formal private sector enterprises in 132 developing, emerging and developed economies by identifying the types of firms (by size and age) that created and destroyed jobs during the pre‐ and post‐crisis periods. The chapter finds that both firm size and age are related to the employment situation. In particular, relative to SMEs, large enterprises are the principal source of employment in the formal private sector. But SMEs and young firms are more dynamic than large firms, both with respect to employment growth and as an important source of employment and firm ownership, particularly women. Since the crisis, for certain types of employment the contribution of young firms and SMEs has declined, owing in part to the faster rate of job destruction seen in SMEs relative to large enterprises. Finally, region‐specific (and by extension country‐specific) characteristics play a stronger role in influencing firm size than the specific sectoral composition. These findings shed light on the importance of an enabling environment for enterprise survival and growth. Indeed, there is a need for policies to better promote SMEs’ and young firms’ access to resources, particularly in the post‐crisis era.

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Risk perception and determinants in small‐ and medium‐sized agri‐food enterprises amidst the COVID‐19 pandemic: Evidence from Egypt

2020

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The coronavirus disease‐2019 (COVID‐19) pandemic has disrupted many activities along agri‐food supply chains in developing countries and posed unprecedented challenges in particular to small and medium agri‐food enterprises (SMEs). Drawing on a survey of 166 Egyptian agri‐food SMEs, this study investigates differences in‐ and determinants of COVID‐19 business risk perception among these enterprises. The empirical results showed that risk perception was highly asymmetric across geographical regions. Enterprises with longer cash flow coverage periods and higher values of total assets perceived significantly lower risk levels, as cash and assets functioned as a buffer against the impact of COVID‐19. The findings of the study imply that the “just‐in‐time” approach and the absence of a proactive and preventative stance to risk management reduced the resilience of agri‐food SMEs to the risks presented by the pandemic. Generally, enterprises that operate both in domestic and export markets perceived lower COVID‐19 risks. Finally, the main export destination to which the surveyed enterprises export was a significant determinant of their risk perception. These findings could be useful to managers of agri‐food businesses in terms of better understanding of risks and promotion of risk management practices. More so, they can help design effective policy interventions to mitigate the impacts of the pandemic on Egyptian agri‐food SMEs and build up their resilience to future pandemics and shocks.

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SMEs, Age, and Jobs: A Review of the Literature, Metrics, and Evidence

Cited by 70 publications

References 17 publications

Ease of Doing Business in East Indonesian Region: Starting a Business Study in North Sulawesi Province SMEs

Ease of Doing Business in East Indonesian Region: Starting a Business Study in North Sulawesi Province SMEs

Enterprise dynamics and employment growth

Risk perception and determinants in small‐ and medium‐sized agri‐food enterprises amidst the COVID‐19 pandemic: Evidence from Egypt

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