employee than do large firms. Audretsch (1995) identifies SMES as contributing 2. 38 times more
innovations per employee than do large firms. Other studies identifying different types of output measures
%while five-year employee growth was 9. 8 %44. One of the keys to the success of the German Mittelstand has been their strong commitment to
Indeed, non-marketing employees in the German Mittelstand engage in direct contact with customers at twice the frequency as in the largest
and financial employees in order to make sure innovative activities truly meet customer needs WK1 15 The Network and Flexible Production Strategies
which employees perform a wide variety of different tasks 15 Porter (1990) provides examples of Italian ceramics and gold jewelry as industries in
employees Technology Developers 1-3%of the SME population(>5 employees Non-Innovative SMES about 40-45%of the SME
population(>5 employees Potential Innovators about 40%of the SME population(>5 employees I III IV
II Source: Clarysse and Duchã ne, 2000 70. Both technology developers and technology users who have a sufficient R&d capacity are able to
successfully apply for R&d-grants or subsidies under the traditional technology policy structures. A recent
Firm size (employees) 47 43 73 R&d budget as%of turnover 21,7%32,1%10,9 %Growth during 1996-1999
in terms of employees 89%46%17,9 %R&d grants, as%of R&d budget19 11%27,6%16,8 %Source:
<250 employees and independent 25 Including CRAFT-projects (14,5%without CRAFT-projects 26 In respect of Belgian (Flemish) definition of the SME:
less than 200 employees 27 SME according to the Anvar-classification: less than 50 employees 28 Only related to equity financing organised by the main R&d granting institute
WK1 26 budget in the following years. R&d grants seem to have substantial additivity to the size of the R&d
A typical such SME might have three employees out of thirty who spend part of their time on R&d activities,
ie Number of employees of the firm xe Maximum number of employees (according to SME definition
if Sales (or Turnover ic3 Total costs of production ip Profit margin ic1 Initial investment capital
1 SMES are defined as firms with less than 250 employees (NUTEK 2004, p. 15 14 performance of SMES with a central focus on innovation capacity are limited (Siqueira and
and employee turnover, which are expressed differently in the intended model than the existing ones The existing models are complex tools
the number of employees, the maximum number of employees distinguishing the different categories of enterprises, firm age,
number of employees or the amount of turnover. It is a misleading term, however, due to the
evidence shows that countries with higher R&d activities per employee have higher levels of total factor productivity growth (Coe and Helpman 1995.
numbers of employees have a higher survival probability (Mansfield 1962 According to Caves (1998), firm failure rates decline with size, given age.
significance of the human relationship in the organization and how the employees are related 44 to the functions of the firm.
) In the manufacturing sectors, SMES tend to have greater numbers of employees, while in consultancy and other service sectors;
SMES tend to have fewer employees. An alternative approach is to talk about smaller firms and larger firms in a relative sense;
the number of employees, to the average size of firms in the sector at that point in time.
The first two of these parameters are the number of employees and the firm†s age.
maximum number of employees distinguishing the different categories of enterprises (for the firm size parameter) and the
250 employees; the data was taken directly from the accounting reports of the firm and the analysis
250 employees; the data was delivered from the firm management for the period of the analysis;
as it had less than 250 employees 60 and the data was taken directly from the accounting reports of the firm for the period of the
as it had less than 250 employees; the data was delivered from the firm†s management for the period of the analysis;
employees. The analysis covered two fiscal years, 1999†2000 and 2000†2001. In comparison to the existing models,
We used a maximum limit of 50 employees to define a â€oesmall firm†in the case
force range of 49†90 employees through the years Summary of paper 7 This paper is a case study wherein the model is implemented, with the innovation
employees. The analysis covered two years, 1999†2000 and 2000†2001. Compared to the existing models,
the number of employees, the maximum number of employees distinguishing the different categories of enterprise, firm age,
of only 1 employee) to large companies employing several hundred people and with a turnover of millions of Euros †basically only excluding multinational companies or large
employees and an annual turnover below â 10 Million, and medium-sized companies as those with fewer than 250 employees and an annual turnover below 50 million.
The same recommendation defines micro-companies as those with fewer than 10 employees and a turnover below â 2 million
In this report, and as the assessment is on behalf of and for regional policymakers (the programme partners) and for the final beneficiaries (SMES), we have followed the
•Improve the capacities of employees in SMES for RTD and innovation management through training and the support of experts
than 250 employees in which †access to finance†was ranked the second most pressing problem
experience with graduate employees. It is limited not to technological fields but also includes marketing website and e-commerce development and product design
employees, number of newly established enterprises, Gross domestic product, and export data per economic sector For countries, sufficiently detailed, internationally comparable economic data is available from OECD (www. oecd
promotion in Gwangju, the average annual growth rate of production, number of employees and companies are 19.2%,9. 6%and 5. 0%respectively.
number of employees has jumped also to 8 270 at 377 companies in 2010 Regional and national policies that have been decisive for prioritisation of domains
small firms (e g. less than 200 employees) in comparison to other industrial areas. Data from the
18 300 employees •Advices and services: Lower Austria implemented programmes (â€oesoft measuresâ€) providing services to support R&d&i activities of SMES.
%In Lower Austria especially small companies(>9 employees) were engaged largely in innovation activities. Still below average are innovation activities in the service sector.
statistics (e g. number of establishments or number of employees per TL2 region), which are available for a
employees (informal employment. According to Terziovski (2010) Small and Medium enterprises (SMES) in the manufacturing sector make a significant contribution to economic
of employees, financial position or annual turnover. However in Zimbabwe, according to Small and Medium Enterprises Institute, SMES are defined as a registered enterprise with employment
employees and an annual turnover in sales of a maximum of 830,000 U s. dollars 2. 2 SMES€ sustainable Development
constantly experience shortages in capital to employee skills to improve production capacity which makes it necessary to continuously improve their production strategies with customized
(1988) for instance, suggested that the smallest firms (20 employees) had the benefit of individualism, the larger firms (50 employees) had the benefit of more resources and systems
while the intermediate group (20-49 employees) lacked the best of either world. Ettlie and
Rubenstein (1987) in support stated that for radical innovations they required additional funds for technical work, capital investment for plant and equipment, marketing and promotions.
At individual level, the capacity included employee empowerment and engagement, trust, training, job rotation, and the extent and range of
At individual level, the capacity included employee empowerment and engagement, trust, training, job rotation, and the extent and range of individual networks
30.5%of firms with a number of employees ranging from 20 to 49, were considered as innovators and 93
%of those with more than 2000 employees were engaged in this process (SESSI, 1996. These results do not
-pany is based on the quality of their employees and on their commitments to networks of innovators.
more than 500 employees benefited from the financial aid 740 F. Bougrain, B. Haudeville/Research Policy 31 (2002) 735†747
Size and status of firms Employees Regional group Subsidiary of group Totala Sectors 1†9 10†19 20†49 50†99 100†250 251†499
1†9 employees â'0. 9152â (â'1. 938) â'1. 2468â â (â'2. 536) â'1. 1226â â (â'2. 936
10†19 employees 0. 240 (0. 487) 0. 216 (0. 415) †SME (20†49 employees) 0. 1231 (0. 296) â'0. 2114 (â'0. 485) â€
SME (50†99 employees) 0. 9406â (2. 002) 0. 7647 (1. 551) 0. 8808â (2. 304
SME (100†250 employees) â'0. 1773 (â'0. 395) â'0. 3186 (â'0. 667) â€
SME (251†499 employees) â'0. 4788 (â'0. 763) â'0. 9574 (â'1. 473) â'0. 7976 (â
'1. 388 Regional group 0. 9187 (1. 457) 0. 9871 (1. 484) 1. 1564â (2. 090
only for very small enterprises (less than 10 employees. For extensive results on the relation between firm size and innovation
to employees for SMES with less than 10 employ -ees. We thought that these figures would not have
Size (number of employees) â'0. 00018 (0. 861 Executives(%)â'1. 3198 (â'0. 431
%of executives to employees Success Success rate Failures Failure rate Number of projects From 0 to 5 9 42.9 12 57.1 21
a According to the Ï 2-test, there is no direct link between the result of a project and the percentages of executives to employees
of executives to employees. Following three elements may explain why collaborative relationships are not more successful when the percentage of executives to
employees is larger •This category is heterogeneous. Research and pro -duction managers are often at the heart of the
employees working there are more able to understand information flowing through industrial networks These results are in conformity with the assertion of
251 and 499 employees were all independent The other categories concern large enterprises and subsidiaries.
than 500 employees whose headquarters is located in the Centre region and subsidiaries of company whose
group employment exceeds 500 employees and is lo -cated outside the Centre region By holding concurrently two criteria, the size of the
employ over half of all private sector employees. They make up 97.3 percent of all exports
per employee than large firms. These small businesses make up approximately 29.6 million businesses with 6 million of these
with employees. Thus, it can be seen that small business and SMES are a critical factor in the economic fabric of nations and
Generally however, â€oesmall†is considered to be fewer than 100 employees, and medium-sized is under 500 employees (Headd
& Saade, 2008 A. Innovation Early research has examined the important role of innovation within entrepreneurship (Schumpeter, 1947.
Frequently used measures of performance criteria include profitability, ROI, number of employees, revenues. Each measure has strengths and weaknesses (Brush and Wanderwerf, 1992;
All businesses are under 50 employees, with a majority in both samples of fewer than 10 employees.
Most businesses are relatively young. Only 9 of them are over 20 years old in the
TABLE 2 FIRM CHARACTERISTICS †SIZE (NUMBER OF EMPLOYEES Characteristic Range Australian Businesses %n=201
Number of Employees Less than 10 From 10 to 20 From 21 to 50 More than 50
owners/managers, SME employees and the economies in which the SME operates. High levels of innovation can facilitate firm
chamber only has 5 employees, servicing thousands of firms in Yogyakarta province Business associations are criticized also widely.
LSE=more than 100 employees MSE=10-99 employees SSE=1-9 employees Turnover=average past 5 years
Price segment product ranges from low, medium, high to top end Number of employees=average last 5 years
Source: data collection IHS Working Paper 27.2013. Innovation in SMES. The case of home accessories in Yogyakarta, Indonesia 42
Annex 2: List of respondents of the qualitative study Director, Dekor Asia, Yogyakarta Director, HS Silver
they be private sector consultants, or employees of chambers of commerce and industry or investors and
employees of financial institutions who are more likely to be listened to by the entrepreneur and managers/owners of SMES.
-ments of visitors, employees, participants and VIPS, within the framework of general event logistics. Applications will
ï§Medium and large enterprises (more than 50 employees) accounted for almost three -quarters of BERD in 2011
ï§Small firms with less than 50 employees accounted for 69 per cent of all R&d active
Figure 8 shows BERD by size of firm, with medium/large firms with 50+employees holding the
less than 50 employees) increased from 24 per cent in 2003 to 27 per cent in 2011.
Figure 10 shows that over 19,000 employees or 14,000 on a full time equivalent (FTE) basis
increase) since 2009 and by 7, 034 employees over the decade Figure 11: Total researchers (headcount and FTES), 2003-2011
less than 50 employees) increased by 41 per cent since 2003, from 757 firms to 1, 109 firms in
Medium/large R&d performing firms (more than 50 employees) increased by 48 per cent since 2003 to 499 firms in 2011
particularly because labor market regulation can limit the number of employees a firm chooses to have. 134 France,
with 50 or more employees, and this provides an incentive for firms to stay under the 50
Therefore, we have looked also at the number of employees per sector (NACE code categories) and
91.8%micro<10 employees 6. 9%small<50 employees 1. 1%medium<250 employees 0. 2%large>250 employees
6 7 8 9 2. Small Business and the EU The phrase Small and Medium-sized Enterprises (SMES) 1 is an intrinsic part of our
2011 vocabulary. Everybody knows it or has heard at least of it. But what exactly constitutes an SME?
Are you an SME? And why is this important to know? These questions will be answered in this chapter
If you are an enterprise with no more than 250 employees, an annual turnover below â 50 million or a balance sheet total below â 43 million,
meaning less than 10 employees. This group of busi -nesses is accountable for more than two thirds of the EU€ s workforce
91.8%micro<10 employees 6. 9%small<50 employees 1. 1%medium<250 employees 0. 2%large>250 employees
1. http://ec. europa. eu/enterprise/policies/sme/small-business-act/think-small-first /Source:
Eurostat-European Business: Facts & Figures, 2009 Apart from being the largest group of businesses,
micro-entities are also the most vulnerable kind of enterprise, notably in terms of size and resources. An obliga
a company of 200 employees, still constituting an SME, but can be detrimental to a micro business which often lacks staff
employees or to launch new products Public Procurement Public Procurement is the purchase of goods, work or services by a government or a public agency
All SMES with less than 250 employees in all 27 EU countries are eligible. The regions under both the
In this context, SME employees can develop their skills to match the continuous challenges stemming from evolving working environments
Table 3. 1%Breakdown of Enterprises & Employees in the Midwest Region 21 Table 3. 2 Midwest Employment by Sector Q1 2012, based on FÃ S
>250 employees) account for less than 1%of the total active enterprises; however, they account for 20%of total employees
in enterprises. Large enterprises and foreign direct investment FDI) are both a significant economic contributor and employer
+%Breakdown of Enterprises & Employees 0 %20 %40 %60 %80 %100 %Enterprises Employees Table 3. 1%Breakdown of Enterprises & Employees in the Midwest Region
Source: CSO Business Demography 2011 & MWRA Analysis CSO figures from Q1 2012 indicate that industry was the largest employer in the Midwest Region
employing 16%of the total workforce, with a further 14%employed in the wholesale and retail
employee training and up-skilling space and information for businesses on the state supports and
employees and property income) from abroad. 38 It is the total domestic and foreign output by residents of a country and
93%of employees feel that it is the right thing for the organization. But, a mere 36%of CEOS have shared such a vision
that frontline corporate employees believe they face a strategic imperative to successfully adopt emerging new technologies.
Employees know that technology matters: a full 78%of respondents said achieving digi -tal transformation will become critical to their
Almost half of employees think digital transfor -mation is upon us, and a third say it looms
But employee skepticism can also impede pace †even when leadership is on board to promote digital
†fully 93%of employees agreed that digital trans -formation was the right thing right now for their
to give employees incentives. Bonuses, raise structures, promotions and performance reviews are some of the tools that compa
Better incentives might help ease employee concerns about digital transformation. One sur -vey respondent noted that â€oeat the operational level
employee morale. †metric systems more than half of companies fail to set key performance indicators to gauge digital transformation â€
-ecutives and employees need clear rewards for making digital transformation a priority â€oethere are two wrong ways to approach (digital
significantly lower than in other countries with a total number of employees of 128.000 in the field of ITC
The goal for 2020 is to reach 250.000 employees for Romania. While in recent years the ICT sector has
by a combination of employer and employee contributions to the National Health insurance Fund (NHIF and of direct allocations from the state budget
In 2011,128, 000 employees were active in the ITC field, which stands for approximately 3%of the overall
Average number of employees (thousands individuals) 128,0 131,2 Turnover of enterprises (mil. lei) 40113,3 37254,2
42674 employees were conducting their activities in the R&d sector, roughly the same number registered
Employees in ICT In 2012,131. 200 of employees were active in the field of TIC, around 3%of the overall workforce.
The increased investments in broadband connections and infrastructure, as well as the investments in innovation of TIC products and services type e-commerce will have as direct implication the increase of
employees Source: The Labour Inspection Purchasing a vehicle Registration of the vehicle 1. Obtaining a certificate of
the employer to the employees that are to be dismissed 3. The employment agencies support the newly unemployed in searching of
fault of the employee, he/she shall High In 2012 ï 3, 686 people suffered an
employee's compensation procedures are initiated 2011, the number of accidents has dropped by 8 %Source: The Ministry
employees etc What they were trying to achieve with their service, including any evidence they have
consultation services and employee and management training to enhance ICT and managerial skills Policies have shifted over time as firms
most small firms, including micro-enterprises with fewer than ten employees, now have at least one
customer databases with a history of client-specific correspondence help managers and employees to respond more effectively to customers.
3. In this document, small and medium-sized enterprises (SMES) are firms with fewer than 250 employees unless
Micro firms are usually those with fewer than ten employees 4. In this document, unless otherwise indicated, the terms â€oeelectronic commerceâ€
employees and among employees in part because the personnel†s daily routine tends to be extremely busy
A Japanese company with 40 employees, which previously recorded sales representatives†field experience in written reports, has developed a marketing database,
Another firm with 40 employees, has established a company-wide intranet with an on-line BBS (bulletin
board system) which all employees can access and in which customers†claims and inquiries are
and employees for responding to customer inquiries, but also make business processes and knowledge accumulation more efficient.
Canadian manufacturing establishments (plants) with ten or more employees (excluding food processing establishments) drawn from Statistics Canada†s Business Register, shows that those with high productivity
countries, Internet penetration rates for medium-sized firms (50-249 employees) are the same and
sometimes higher than for larger firms (more than 250 employees), with penetration rates of over 80
Small firms (10-49 employees) have a slightly lower penetration rate between 60%and 90%(Figure 1). Even in micro-enterprises, the penetration rate is nearly 60%in most
500 employees, suggests that firm performance, as measured by profit or sales, is associated not with computer
Note 2. For Canada, 50-299 employees instead of 50-249 and 300 or more instead of 250 or more.
100 or more employees. For The netherlands, 50-199 employees instead of 50-249. For Switzerland, 5-49 employees
instead of 10-49 and 5 or more employees instead of 10 or more. For Mexico, Businesses with 21 or more employees, 21
-100 employees instead of 10-49,101-250 instead of 50-249,151-1000 instead of 250 or more Note 3. Internet and other computer-mediated networks
Source: OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003
Data available from surveys in some countries indicate that SMES use the Internet (and e-mail
for better external communications and as a means of obtaining business information. In Japan, the most
fewer than 250 employees in Lanarkshire (Scotland) shows a similar pattern of Internet use. Around 60
Percentage of responses of 1 700 SMES with 300 or fewer employees using the Internet as of August 2001
Percentage of businesses with ten or more employees 0 20 40 60 80 100 De
2. All businesses with 50 and more employees 3. Use, orders received and placed refer to Internet and other computer-mediated networks
70%of firms with 250 or more employees reported on-line purchases, as compared to about 30%of small
firms (10-49 employees) and 50%of medium-sized firms (50-249 employees. In other OECD countries
1. All businesses with 50 or more employees 2. Orders received or placed over the Internet and other computer-mediated networks
2001, selling over the Internet by micro-enterprises with 5-9 employees declined from 16%to 13%and by
firms with 10-49 employees from 21%to 18, %while the number of firms with 50-249 employees selling
on line rose from 17%to 20%.%In Norway, only 12%of micro-enterprises with 5-9 employees engaged in
on-line sales in 2001, down from 21%in 1999, while 28%of firms with 50-249 employees and one-third
of firms with 250 or more employees had on-line sales in 2001, and shares for larger firms are increasing
OECD, 2002c Most Internet e-commerce transactions are domestic rather than cross-border transactions Figure 6). The Eurostat†s E-commerce Pilot Survey indicates that European companies mainly sell over
Businesses with more than 250 employees 0 5 10 15 20 25 >1%>2%>5%>10%>25%>50
Businesses with 10-49 employees 0 5 10 15 20 25 >1%>2%>5%>10%>25%>50
A recent survey of SMES with fewer than 250 employees in 19 European countries shows that around 40%do not use the Internet for selling
Micro f irms w ith 0-9 employees Small f irms w ith 10-49 employees
Medium firms w ith 50-249 employees Note: Percentage of 1 427 firms with fewer than 250 employees not using the Internet in 19 countries (15 EU member
states plus Iceland, Liechtenstein, Norway and Switzerland Source: European commission (2002a In sectors such as construction and among some small retailers, the view that Internet
e-commerce is unsuitable for their business is relatively strong. A study of 20 small construction
contractors in Australia with 2-45 employees suggests that small firms in this industry have been not only
firm with 90 employees and an emphasis on personal contact with clients decided not to adopt the Internet
A study of small ICT companies with 3-80 employees suggests that the Internet was adopted by
Ni-roku is a Japanese magnet manufacturer with 12 employees, which was established in 1940 In September 1997, an employee created the company†s Web site (www. 26magnet. co. jp.
By 2000, annual e-commerce sales of magnet products via the site had reached already more than USD 700 000, and the site
In 1996 a company employee bought a personal computer at his own expense to use the Internet
1-9 employees or the self-employed, may adopt a simple Web site without any e-commerce function if the
SMES with 10-249 employees in Austria, Greece, Italy, Luxembourg, Spain, Portugal and the United
Percentage of businesses with ten or more employees using the Internet 0 10 20 30
study of 12 Canadian high-technology SMES, most with fewer than 90 employees, showed that these firms
Percentage of businesses using a computer with ten or more employees 0 5 10 15
SMES are those with 25-250 employees, large are those with more than 250 employees. The survey sample sizes are:
Singapore 105 establishments classified as SME and 97 as large firms Brazil, 98 SMES and 102 large firms;
firms with 10-49 employees indicated national differences in consumer protection as the most important
firms (small defined as less than 250 employees. Small firms were less positive about confidence factors
Percentage of responses of firms with fewer than 250 employees using the Internet in 19 countries (15 EU
an average of six employees per agency. On the other hand, the number of potential customers, some of
) Another textile producer with 300 employees does not use the Web for buying and selling because
West country Violins, with three employees in East Devon (United kingdom), is run by a husband and wife, Brian and Felicity Ward-Smith, who purchase, restore
employees. Prize and award programmes may give high visibility and publicity to the best users but may
recognition of the importance for small business managers and employees of ICT applications and required
Spain A programme is designed for micro-enterprises (fewer than 20 employees) in small towns with a special emphasis on training in the use of the Internet, e-mail and new management
and employees to tailor their learning according to their immediate needs. Service users can contact the trained staff in local Learndirect centre for
•Training programmes for SME managers and employees focusing on both technical and managerial skills need to be provided in cooperation with business and sector organisations
managers and employees are focused increasingly on both technical (ICT) and managerial â€oee-businessâ€) skills designed to improve abilities to benefit from e-business strategies
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