Small companies create 85% of new jobs

85% of net new jobs (new jobs created minus jobs lost in a given period) in the EU between 2002 and 2010 were created by small and medium sized enterprises (SMEs). This figure is considerably higher than the 67%-share of SMEs in total employment. During this period, net employment in the EU’s business economy rose substantially, by an average of 1.1 million new jobs each year.

These are the main results of a study on the essential contribution of SMEs on job creation presented by the European Commission last month.
With 1% annually, the employment growth for SMEs was higher than for large enterprises with 0.5%. A clear exception is the trade sector, in which employment in SMEs increased by 0.7% annually, compared to 2.2% in large enterprises. This is due to the strong increase of large trade enterprises, in particular in sales, maintenance and repair of motor vehicles.

Within the SME size-class, micro firms (less than 10 employees) are responsible with 58% for the highest proportion of total net employment growth in the business economy.

Commission Vice-President Antonio Tajani, responsible for Entrepreneurship and Industry valorised the relevance of SMEs for European economy, recognising the need to support them at all levels, since they represent a clear key for restoring economic growth.
More information can be found on the webpage of the SME Performance Review.

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About Wanobe, the business knowledge network
Writer, journalist and broadcaster, sixty-something David likes nothing better than being with family and friends, eating out and drinking great wines, and scuba diving.

One Response to Small companies create 85% of new jobs

  1. Thank you for such nice information, i really like this. Hope to see such things from you in future also.

    Best Regards.

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