View
112
Download
0
Category
Preview:
DESCRIPTION
Enterprise Development has been a vital tool for developing economies. Judi Sandrock compares the BRICS member countries and their efforts in growing economies by supporting small enterprises.
Citation preview
…building the economy one job at a time
Judi Sandrock
Case Study – The role of Micro and Small Businesses in economic growth and job creation
(2007 to 2013)
…building the economy one job at a time
Benchmarking undertaken amongst high growth economies
Japanese economy: From 1950 to 2005, 83% of the growth of economy came from “Mom and Pop” businesses
– Prof. Ryo Kambayashi, Institute of Economic Research, Hitotsubashi University
…building the economy one job at a time
Small Business Contributions Since 2007 Brazil – 16 million SMEs contribute 20% of Brazil’s GDP, employ 60 million people or 56% of the workforce Russia – firms with less than 200 employees contributed 76% of job creation India - 26 million SMEs contribute 8% of India’s GDP, employ 90% of the workforce China - 60% of GDP and 75% new jobs South Africa – 2,4 million SMEs contribute 31% of SA’s GDP, employ 56% of the workforce US – 56% of GDP growth and 71% new jobs
…building the economy one job at a time
0
10
20
30
40
50
60
70
80
90
100
Brazil Russia India China South Africa
USA
GDP
New Jobs
No data
%
…building the economy one job at a time
Brazil Russia India China SA US
GDP ($ Trillion) 2,362 2,504 4,784 8,260 0,579 15,660
Percent of BRICS GDP 13% 14% 26% 45% 3% 85%
Growth Rate Economy 1,30% 3,40% 6,50% 7,80% 2,60% 2,20%
GDP Per Capita $12 000 $17 700 $3 900 $9 100 $11 300 $49 800
…building the economy one job at a time
Brazil Russia India China SA US
Agriculture 5,40% 3,90% 17% 10,10% 2,40% 1,20%
Industry 27,40% 36% 18% 45,30% 32,10% 19,10%
Services 67,20% 60,10% 65% 44,60% 64,90% 79,70%
…building the economy one job at a time
5%
27%
67%
Brazil
4%
36% 60%
Russia
17%
18% 65%
India
10%
45% 45%
China 2%
32%
65%
SA
Agriculture Industry Services
…building the economy one job at a time
Brazil Russia India China SA US
Unemployment 6,20% 5,70% 9,90% 6,40% 22,70% 8,20%
PopulaRon below poverty line 21,40% 12,70% 29,80% 13,40% 31,30% 15,10%
Gini Index 51,90 41,70 36,80 47,40 63,10 45,00
InflaRon rate 5,50% 5,10% 9,20% 2,60% 5,20% 2%
…building the economy one job at a time
Brazil Russia India China SA US
Export 1 China Nether-‐lands UAE US China Canada
Export 2 US China US Hong Kong US Mexico
Export 3 ArgenTna Italy China Japan Japan China
Import 1 US China China Japan China China
Import 2 China Germany UAE South Korea Germany Canada
Import 3 ArgenTna Ukraine Switzerland US US Mexico
…building the economy one job at a time
Brazil Russia India China SA UK
PopulaRon 201 m 142 m 1 220 m 1 349 m 50 m 316 m
PopulaRon (0 to 24 yrs) 41% 27,50% 47% 33% 49% 33,70%
Urban populaRon 87% 73% 30% 47% 62% 82%
Youth Unemployment 17,80% 15,50% 10,20% 6,40% 49,80% 21,00%
Internet PenetraRon 44% 43% N/A 53% 17% 78%
…building the economy one job at a time
Some Suggestions - Way Forward
• Link small businesses across BRICS to open up trade opportunties
• Facilitate sharing of knowledge across BRICS specific to small businesses
• Exchange programme for small business owners to operate for 6 to 12 months on other BRICS countries to understand the markets and build relationships
…building the economy one job at a time
References
“How South Africa can boost support to small businesses: Lessons from Brazil and India” - Stephen Timm, Mike Herrington www.tips.org.za
„Job Creation and Job Destruction in the Russian Economy“ Alessandro Acquisti and Hartmut Lehman www.tcd.ie
CIA Factbook www.ciafactbook.com
Recommended