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This publication presents the findings of the OECD review of SME and entrepreneurship policy in Brazil. SMEs play an important role for economic growth and social inclusion in Brazil, accounting for 62% of total employment and 50% of national value added. However, productivity gaps between SMEs and large companies are wider in Brazil than in the OECD area, which is also the result of low innovation and export propensity among Brazilian SMEs. Business ownership and business creation are common, but growth-oriented entrepreneurship is much less widespread.
Brazil’s SME policy is enshrined in the 1988 Federal Constitution, which grants to micro and small enterprises a preferential treatment in different policy areas (e.g. tax and labour law). Brazilian SME policies are, therefore, mostly aimed at this constituency, whereas mid-sized firms are largely missing in the national policy debate. Simples Nacional, a preferential tax and regulatory regime, is the main federal SME policy, but Brazil also operates a large number of targeted programmes for SMEs. This report provides policy recommendations to enhance Brazil’s SME and entrepreneurship performance, covering, among others, innovation policy, export support, access to finance, and women’s entrepreneurship.
SMEs and entrepreneurs make an important contribution to the Canadian economy. SMEs account for 60% of total employment, and Canada performs very well across many measures of small business generation, growth and innovation. However, further increases in productivity in medium-sized firms, an increase in SME exports, a greater business start-up rate and an increased number of high-growth firms could bring substantial benefits for the national economy.
This report identifies several areas where new policy approaches could help achieve these objectives. Framework conditions for small business could be improved in business taxation, public procurement, access to financing and the commercialisation of research. New and extended programmes could be introduced in domains including entrepreneurship education, management advice and consultancy, and workforce skills development. A major effort is recommended to prioritise women's entrepreneurship, including by supporting social enterprises, and federal support could be offered to support the exchange of information on best practice SME regulations and programmes among provinces and territories. All this could be brought together and co-ordinated through the umbrella of a national strategy and a lead agency for SME and entrepreneurship policy.
SMEs play an important role for economic growth and social inclusion in Indonesia. Based on data from the Ministry of Co-operatives and SMEs, Indonesian SMEs account for nearly 97% of domestic employment and for 56% of total business investment.
Indonesia has a Micro, Small and Medium Enterprise (MSME) Law and a specific ministry dedicated to co-operatives and SMEs. The wealth of public programmes for SMEs could be streamlined, and more could be done to support innovative companies able to generate productive jobs and participate in international markets. The development and implementation of an SME strategy would be instrumental to improve the overall coherence of national policy measures, objectives and measurable targets.
The review of SME and entrepreneurship policy of Indonesia is part of a peer-reviewed series, by the OECD Working Party on SMEs and Entrepreneurship, which aims to improve the design, implementation and effectiveness of national SME and entrepreneurship policies.
This publication presents the findings of an OECD review of SME and entrepreneurship policy in Ireland. It assesses the challenges for SME and entrepreneurship development and offers recommendations for future policy.
SMEs and entrepreneurs play a crucial role in the Irish economy, with SMEs accounting for more than 70% of employment. Attitudes to entrepreneurship are positive and SME innovation rates are high. However, SME productivity has not been increasing in recent years, business entry and exit rates are low and few Irish SMEs are directly engaged in exports. There is also untapped potential for entrepreneurship among women, youth and migrants, and variations across the country in SME and entrepreneurship performance.
Ireland has a strong set of policies and programmes to address these challenges. The business environment is generally favourable, there are many best practice programmes for supporting high potential SMEs and entrepreneurs, and strong co-ordination of policies across government. At the same time, policies could be strengthened in areas such as growing productivity in medium-sized businesses, increasing the start-up rate, increasing exports, fostering enterprise networks and clusters, drafting a unified SME and entrepreneurship policy strategy document and strengthening the role of Local Enterprise Offices.
This report examines Israel’s performance in stimulating SMEs and entrepreneurship and makes recommendations for government policy. A dual economy has gradually emerged in Israel, in which high rates of successful technology-based entrepreneurship contrast with low average productivity and growth in traditional SMEs. Israel has excellent framework conditions and programmes for technology-based start-ups and SMEs in areas such as R&D, high-level skills generation and venture capital finance. These strengths need to be maintained. At the same time, more needs to be done to spread success to all types of SMEs and all groups of the Israeli population. This report recommends a range of new and expanded interventions for example in access to credit, broad innovation, workforce skills development, management support and entrepreneurship education. It recommends underpinning these actions with a national SME and entrepreneurship policy strategy and new arrangements for inter-ministerial co-ordination.
The government of Kazakhstan has set an objective to substantially increase the contribution of SMEs and entrepreneurs to employment and value added in the economy. Although there are large numbers of SMEs and entrepreneurs in the country, achieving this growth will require a step change in the productivity of existing SMEs and the emergence of many more medium-sized and growth-oriented firms.
This report shows the important achievements of the government in creating a clear vision and structures for SME and entrepreneurship policy, including major improvements in business regulations and through the introduction of the Business Road Map 2020 programme offering direct supports to SMEs and entrepreneurs in areas such as financing and infrastructure. It also highlights the current challenge of doing more to strengthen management capabilities, skills, and innovation in SMEs and new enterprises, and makes a range of specific recommendations for policy actions including further building the incubator and Entrepreneurship Support Centre infrastructure, introducing dedicated support for high-growth potential enterprises, and stimulating supply chain linkages around foreign director investors.
This publication presents the findings of the OECD review of SME and Entrepreneurship Policy in Viet Nam. It offers an in-depth examination of the performance of small and medium enterprises (SMEs) and entrepreneurship in Viet Nam, the quality of the business environment, and national policies in support of new and small businesses. The report shows that Viet Nam is one of the most globally integrated economies in the world, building its solid growth performance on the attraction of foreign direct investments and export promotion. Viet Nam’s business environment has considerably improved in recent years, although important reforms are still needed in certain policy areas. Viet Nam's SMEs contribute to national employment and national GDP proportionally less than in the OECD area, although official statistics do not take into consideration the large informal sector that mostly consists of self-employed people and micro-enterprises. Viet Nam’s SME and entrepreneurship policies are relatively new, dating back to the early 2000s. In this respect, the 2018 SME Support Law is an important milestone which may help address some of the challenges that are holding back the development of a more vigorous domestic enterprise sector. Key policy priorities in this regard, building better business linkages between multinationals and local enterprises and stronger business development services, are the subjects of two thematic chapters of the report.
This report presents the findings and recommendations of the OECD review of SME and Entrepreneurship Policy in the Slovak Republic. It examines how to address the challenges of stimulating more productive entrepreneurship, supporting enterprise scale-up, stimulating SME exports and global value chain participation, increasing SME innovation and innovative entrepreneurship, and making entrepreneurship more inclusive across the population. The report examines SME and entrepreneurship performance and the business environment for SMEs and entrepreneurship in the Slovak Republic, giving benchmarks against other OECD countries. The report also takes a close look at arrangements to ensure policy leadership, co-ordination and consultation in this field. It examines the government support programmes across areas including SME and entrepreneurship financing, supporting innovation, building SME workforce skills and public procurement. It also examines the east-west divide in SME and entrepreneurship activity and their supporting conditions in the Slovak Republic and how to strengthen regional entrepreneurial ecosystems across the country. Further chapters focus on SME digitalisation and the promotion of self-employment and social entrepreneurship to strengthen the labour market attachment of the Slovak Republic's Roma community.
The report is intended to contribute to the implementation of policies in a post-conflict Libya to promote private sector development. The report analyses the structural economic and framework conditions prevalent in Libya, highlights potential drivers of development and considers the role of SMEs and entrepreneurship promotion in driving post-conflict recovery. Based on international experience and practices, and considering the context of the country, the report identifies the necessary legal frameworks, institutions and policies for the promotion of SME and entrepreneurship. The document is part of a wider MENA Transition Fund project to support the design and implementation of SME policies in Libya.
Although small and medium-sized enterprises (SMEs) in Mexico make up most of the firms in the formal economy, they are hampered by a lack of financing and skilled workers. This book assesses the comprehensive SME policies introduced by the Federal Government during the past six years. While lauding the improvements achieved by the new policy measures, including better access to financing, reduced lead times for firm creation, and higher survival rates, the review cautions that the capacity of states and local authorities to absorb federal policy programmes needs to be enhanced and tailor-made initiatives in favour of micro firms need to be expanded. In addition, the review makes practical recommendations on how to improve policy co-ordination, create an efficiency evaluation culture at all levels of government, and strengthen the entrepreneurial business environment.
The relevance and economic implications of public procurement – which represents 12% of GDP and one-third of government expenditures in the OECD area - make it a powerful tool for improving public service delivery. At the same time, governments are increasingly using their purchasing power to pursue strategic objectives in different policy areas such as sustainability, innovation or providing support to small and medium-sized enterprises (SMEs). Making it easier for SMEs to access public procurement opportunities improves the general economic environment, promotes inclusive growth and supports principles such as equal treatment, open access and effective competition. This report takes stock of the approaches adopted in 37 OECD and non-OECD countries to help SMEs perform better in public procurement markets, including removing barriers to their participation. The report also describes the main features of a public procurement system that benefits both the public sector and SMEs.
Small firms are playing an ever-increasing role in innovation, driven by changes in technologies and markets. Some spin-offs and high growth firms are having remarkable success. However, the broad bulk of small firms are not capitalising on their advantages. This book explores how government policy can boost innovation by improving the environment for entrepreneurship and small firm development and increasing the innovative capacities of enterprises. Policy findings and recommendations are presented in three key areas: embedding firms in knowledge flows; developing entrepreneurship skills; and social entrepreneurship. In addition, country notes present statistics and policy data on SMEs, entrepreneurship and innovation for 40 economies, including OECD countries, Brazil, China, Estonia, Indonesia, Israel, the Russian Federation, Slovenia and South Africa.
SMEs, Entrepreneurship and Innovation is part of the OECD Innovation Strategy, a comprehensive policy strategy to harness innovation for stronger and more sustainable growth and development, and to address the key global challenges of the 21st century.
This STAN: OECD Structural Analysis Statistics 2014 provides analysts and researchers with a comprehensive tool for analysing industrial performance across countries. It includes annual measures of production, value added (at current and constant prices), gross fixed capital formation, number engaged and labour compensation. Data are in national currency for current price data i.e. in Euros for EMU countries; in terms of the current price value in the reference year (usually 2005) for volume data and in number of persons for employment data. Coverage is provided for 15 OECD countries and for multiple sectors, with extended coverage of service sectors according to ISIC Revision 4 classification.
STAN: OECD Structural Analysis Statistics 2016 provides analysts and researchers with a comprehensive tool for analysing industrial performance across countries. The publication includes the following annual measures: production, value added (at current and constant prices), gross fixed capital formation, number engaged and labour compensation.
Data are presented in national currency for current price data, in terms of the current price value in the reference year (2010) for volume data and in number of persons for employment data. Coverage is provided for 18 OECD countries and for multiple sectors, with extended coverage of service sectors according to SNA08/ISIC Revision 4 classification.
STAN: OECD Structural Analysis Statistics 2018 provides analysts and researchers with a comprehensive tool for analysing industrial performance across countries. The publication includes the following annual measures: production, value added (at current and constant prices), gross fixed capital formation, number engaged and labour compensation. Data are presented in national currency for current price data, in terms of the current price value in the reference year (2010) for volume data and in number of persons for employment data. Coverage is provided for 36 OECD countries and for multiple sectors, with extended coverage of service sectors according to SNA08/ISIC Revision 4 classification.
STAN: OECD Structural Analysis Statistics 2020 provides analysts and researchers with a comprehensive tool for analysing industrial performance across countries. The publication includes following annual measures: production, value added (at current and constant prices), gross fixed capital formation, number engaged and labour compensation.
Coverage includes multiple sectors, with extended coverage of service sectors according to ISIC Revision 4 classification.
OECD's journal on science, technology and industry policy and issues. This issue includes articles on technology and employment, innovation, long cycles, training and employment in new production models, structural change and employment, globalisation, and structural change and employment growth.
Special Issue on Innovation and Standards. New forms of innovation prompt a re-examination of how the strengths and weaknesses of national innovation systems are diagnosed. This is done in order to guide policy on supporting innovation and shaping the general conditions in which scientific and technical knowledge is put to economic use today. These general, "framework conditions", range from today's emerging global information infrastructures to the full gamut of regulatory and legal constraints operating at national and international levels. These include technical aspects related to standardisation, whose growing importance illustrates the emergence of new policy issues.
Why do governments engage in technology foresight? What lessons emerge from the results of national experiences in technology foresight? This special issue of the STI Review addresses these questions, and looks at the strengths and weaknesses of different methodologies, including Delphi surveys, and the reliability of their results. It also addresses the issues of industrial involvement, the scope for international collaboration in technology foresight and the potential consequences for international technology co-operation or competition. Studies of government foresight exercises and their results are presented for Australia, France, Germany, Japan, the Netherlands and the United Kingdom.
The papers in this special issue of the STI Review examine theoretically and empirically the role of innovation and technology diffusion in the process of economic growth and the impact of technology on jobs using different methodologies and data sets.