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SME Competitiveness Outlook 2015

Connect, Compete and Change for Inclusive Growth

image of SME Competitiveness Outlook 2015

This report looks at the missing link to inclusive growth for Small and Medium Enterprises (SMEs), which are less productive relative to large firms in the developing world than in the developed world. Based on three pillars of competitiveness "connect, compete and change" the SME Competitiveness Grid presented here makes it easy to spot strengths and weaknesses of enterprises. It determines whether these reflect weaknesses at the firm level, within their business environment or in the national environment. This helps countries understand the nature of their SME competitiveness and what is inhibiting them. Using firm-level data, this report finds that many of the biggest gaps between small and large firms are in the "connect" pillar. It is targeted at SME experts, trade and investment institutions, businesses, and governments. It is the first in an annual series.

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Small but numerous: Pooling resources, creating linkages

Small firms are at a disadvantage with their limited ability to influence decision-making processes, market outcomes and defend their own interests. Small firms often have less bargaining power than large firms and may therefore only receive a limited portion of the chain’s profits. Difficulties of being heard due to their size extends to policymaking processes, which can end up favouring those with a louder voice. The result is a regulatory environment that systematically disadvantages SMEs.

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