As the FT reported in January 2012, “…in the United States and other developed markets, SMEs commonly account for half or more of gross domestic product…. A recent study from the European Commission indicates that SMEs generated 85 per cent of all new jobs in the European Union from 2002 to 2010…“ In an April 2012 interview with this site, Prof. Mark Hart (who heads up the Global Entrepreneurship Monitor – GEM) further underlined this stating, “…It’s clear to me that small businesses, particularly micro-enterprises, have been responsible for the majority of the gross job creation in the last five years… particularly through the recession….“
Even more astonishing is the fact that most of these businesses are (as the description suggests) small. The overwhelming majority are owner managed with only a handful of employees. Some will grow and scale to become huge enterprises, but in the main these are businesses which scale to a size where they’re sustainable and continue to provide a good income for their owners and employees. Another critical characteristic is that many of these enterprises cost very little to start meaning that for under $1,000 – people can become entrepreneurs.