VI. Conclusion
This paper introduces a new and unique set of cross-country indicators of the
contribution of small and medium enterprises (SMEs) to employment and wealth
creation. The dataset reveals a significant variation in the size and economic activity of
the SME sector across income groups. Countries with a higher level of GDP per capita
have larger SME sectors in terms of their contribution to total employment and GDP.
However, it is also interesting to note that the overall contribution of small firms – formal
and informal – remain about the same across income groups. As income increases, the
share of the informal sector decreases and that of the formal SME sector increases.