Micro-, small, and medium-size enterprises (MSMEs) on average have only half the productivity of large companies, and less than that in emerging economies. Partner Anu Madgavkar and colleagues present a granular data set of MSMEs’ economic and employment contributions in 16 countries that account for more than half of global GDP. Their contributions relative to large businesses vary widely from country to country, but boosting the productivity of these categories of enterprises could substantially increase GDP, especially in emerging economies, the team finds.
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Pie bar charts show the share of business employment and the share of business value added for micro-, small, and medium-size enterprises (MSMEs) across 16 nations. The top 4 nations for share of business employment for MSMEs are Kenya at 96%, Indonesia at 87%, Nigeria at 83%, and Italy at 76%. The bottom 4 nations for that metric are the United Kingdom at 52%, the US at 58%, Germany at 57%, and India at 62%. The top 4 nations for share of business value added for MSMEs are Portugal at 67%, Indonesia at 64%, Israel at 64%, and Italy at 63%. The bottom 4 nations for that metric are India at 30%, Nigeria at 36%, the US at 39%, and Germany at 45%.
Source: ILOSTAT; S&P Global Market Intelligence; US Bureau of Economic Analysis; US Census Bureau; McKinsey Global Institute analysis.
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To view the interactive, see “A microscope on small businesses: The productivity opportunity by country," May 29, 2024.