SMEs and entrepreneurs are central to the productivity and innovation potential of economies, as well as to job creation and social inclusion. The OECD work with countries and regions to enhance contributions of diverse SMEs and entrepreneurs to resilience and economic growth. This includes building institutional and regulatory frameworks that are conducive to business creation and scale-up, improving access to finance, skills, innovation assets and knowledge networks, and fostering engagement in supply chains and trade.
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Empowering SMEs and entrepreneurs is crucial to sustainable and inclusive growth. They fuel innovation and competition, sustain competitiveness in global markets and value chains, provide a main source of employment, champion inclusion and represent the lifeblood of local economies and communities. They are also pivotal in the transition of economies to a digital and sustainable future. The OECD works with countries and regions to develop policies that strengthen the resilience of SMEs and entrepreneurs and unlock their potential in a changing global landscape.
Key messages
SMEs and entrepreneurs are key drivers of the green and digital transitions, owing to their large weight in the economy, their role in developing and propagating innovation, and their collective environmental footprint. Sustainable practices and digital adoption are becoming prerequisites for SMEs to compete in local and global markets, but many face challenges in adapting their business models and investing in the transition. The work of the OECD sheds light on transformation trends and key policy levers to unlock the potential of the twin transition across the diverse business population, while addressing trade-offs and risks. ??????
Policies and instruments of relevance to SME development and entrepreneurship are wide and varied. They often cut across the boundaries of ministries and government agencies, as well as across levels of government. This calls for effective policy coordination and governance, and for taking the spatial dimension into account. It involves adopting an SME and entrepreneur lens early on in policy design and delivery across a wide range of policy areas. It also involves understanding how diversity in the business population affect policy effectiveness through granular and timely data collection and evaluation tools, as well as engaging actively with SMEs and entrepreneurs. The OECD works with countries and regions to strengthen business statistics and policy information, develop benchmarking and monitoring tools, and deploy whole-of-government approaches to SMEs and entrepreneurship
Context
Managing Shocks and Transitions – Future Proofing SME and Entrepreneurship Policies
SMEs and entrepreneurs have been disproportionately affected by recent crises and disruptions. Building their resilience in an uncertain business environment is key for economies to address the challenges of tomorrow. Ministers and experts reflect on what governments can do to support SMEs and entrepreneurs through crises, and strengthen their transition to the digital and sustainable economy.
SMEs are key contributors to employment and value creation
Across OECD countries, SMEs represent around 99% of all firms, are a main source of employment and generate 50% to 60% of value added on average. Moreover, SMEs are vital for nurturing local communities and driving economies’ and societies’ major transitions.?
Committee on SMEs and Entrepreneurship (CSMEE)
The Committee on SMEs and Entrepreneurship (CSMEE) spearheads the OECD's efforts to provide Member Countries with policy analysis, indicators, statistics, and recommendations to unlock the potential of SMEs and entrepreneurship. Its objectives encompass enhancing SME productivity and innovation, addressing barriers to finance, international market access, and skills development. Furthermore, it supports the efforts of governments and main stakeholders in fostering SME digitalisation and sustainability, while navigating associated risks. The Informal Steering Group on SME and Entrepreneurship Financing complements its work by investigating trends and policy endeavors aimed at facilitating access to finance.
