Small Business Shared Interest Group

SMBs Globally?

v Over 90% of the business population represents small and medium-sized enterprises (SMEs) globally.

Biggest – tiniest employers:

v SMEs account for 50-60% of total employment worldwide.

Start-Up Bonanza:

v In the U.S., around 543,000 new businesses are started each month, but only about 50% survive five years or more!!!

Emerging markets:

v Developing countries often have higher start-up rates. For ex, Uganda has one of the highest entrepreneurship rates in the world, about 1/3^rd of adults own a business.

Business Ladies:

v Women own 36% of small businesses worldwide, and this number is steadily increasing. In the U.S., women-owned businesses have grown by 58% from 2007 to 2018.

Euro-zone WOW!

v SMEs are often the main drivers of innovation. In the European Union, 99% of all businesses are SMEs, and they are responsible for over half of the EU's GDP, driving innovation and economic growth.

Emerging economies:

v In emerging markets, formal SMEs contribute up to 40% of national income (GDP).

Marketing:

v 73% of small businesses invest in social media marketing, with Facebook being the most popular platform.

Huge $financing$ market:

v There is an estimated $5.2 trillion financing gap for SMEs globally. Access to credit remains one of the biggest challenges for small businesses, especially in developing countries.

Fun:

v New Zealand boasts the highest density of small businesses, with approximately one small business for every ten people.

v The oldest continuously operating small business in the world is the Hōshi Ryokan, a traditional Japanese inn, which has been in business since 718 AD.

v Around 50% of small businesses in the U.S. are home-based

SMBs Globally?

v Over 90% of the business population represents small and medium-sized enterprises (SMEs) globally.

Biggest – tiniest employers:

v SMEs account for 50-60% of total employment worldwide.

Start-Up Bonanza:

v In the U.S., around 543,000 new businesses are started each month, but only about 50% survive five years or more!!!

Emerging markets:

v Developing countries often have higher start-up rates. For ex, Uganda has one of the highest entrepreneurship rates in the world, about 1/3^rd of adults own a business.

Business Ladies:

v Women own 36% of small businesses worldwide, and this number is steadily increasing. In the U.S., women-owned businesses have grown by 58% from 2007 to 2018.

Euro-zone WOW!

v SMEs are often the main drivers of innovation. In the European Union, 99% of all businesses are SMEs, and they are responsible for over half of the EU's GDP, driving innovation and economic growth.

Emerging economies:

v In emerging markets, formal SMEs contribute up to 40% of national income (GDP).

Marketing:

v 73% of small businesses invest in social media marketing, with Facebook being the most popular platform.

Huge $financing$ market:

v There is an estimated $5.2 trillion financing gap for SMEs globally. Access to credit remains one of the biggest challenges for small businesses, especially in developing countries.

Fun:

v New Zealand boasts the highest density of small businesses, with approximately one small business for every ten people.

v The oldest continuously operating small business in the world is the Hōshi Ryokan, a traditional Japanese inn, which has been in business since 718 AD.

v Around 50% of small businesses in the U.S. are home-based

What definition is being used for Small and Medium-sized businesses? According to the SBA, this definition varies depending on a company's NAICS code and is determined by revenue size or total number of employees.

------------------------------
David Belnap, CMA, CSCA, CPA
Belnap Accounting
Hollywood FL
United States

Original Message:
Sent: 07-02-2024 08:07 AM
From: Ilya Ilienko
Subject: Small- Mid-size Business (SMB) stats - did you know?

SMBs Globally?

v Over 90% of the business population represents small and medium-sized enterprises (SMEs) globally.

Biggest – tiniest employers:

v SMEs account for 50-60% of total employment worldwide.

Start-Up Bonanza:

v In the U.S., around 543,000 new businesses are started each month, but only about 50% survive five years or more!!!

Emerging markets:

v Developing countries often have higher start-up rates. For ex, Uganda has one of the highest entrepreneurship rates in the world, about 1/3^rd of adults own a business.

Business Ladies:

v Women own 36% of small businesses worldwide, and this number is steadily increasing. In the U.S., women-owned businesses have grown by 58% from 2007 to 2018.

Euro-zone WOW!

v SMEs are often the main drivers of innovation. In the European Union, 99% of all businesses are SMEs, and they are responsible for over half of the EU's GDP, driving innovation and economic growth.

Emerging economies:

v In emerging markets, formal SMEs contribute up to 40% of national income (GDP).

Marketing:

v 73% of small businesses invest in social media marketing, with Facebook being the most popular platform.

Huge $financing$ market:

v There is an estimated $5.2 trillion financing gap for SMEs globally. Access to credit remains one of the biggest challenges for small businesses, especially in developing countries.

Fun:

v New Zealand boasts the highest density of small businesses, with approximately one small business for every ten people.

v The oldest continuously operating small business in the world is the Hōshi Ryokan, a traditional Japanese inn, which has been in business since 718 AD.

v Around 50% of small businesses in the U.S. are home-based

------------------------------
Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
------------------------------

Great question, I'm not sure what definition the particular article that Ilya quoted used, but this is something our group has pondered and discussed quite frequently over the years.  Our IMA small business group has elected not to specifically define small and medium-sized entities (SME) because it can vary so widely between industries, as you mentioned, and also throughout the world.   The definitions are further complicated if an entity is part of a larger group.  We feel that by not defining SME, the IMA small business group is more open and inclusive to businesses of all nations and industries that self-define themselves as an SME.

Some global examples of SME definitions - 

• United Arab Emirates (UAE) has a very specific definition of micro-, small- and medium-size enterprises based on number of employees and sales turnover (https://www.mondaq.com/corporate-and-company-law/530664/smes-in-the-uae). 
• The European Union has also established recommended guidelines based on staff headcount and either turnover or balance sheet totals (https://single-market-economy.ec.europa.eu/smes/sme-fundamentals/sme-definition_en).  
• China's definition of SME is complex and depends on industry category, but generally considers number of employees, annual revenue and total assets.  China's definition of SME tends to be larger than that of European ones. (https://www.china-briefing.com/news/china-issues-classification-standards-for-smes/)

I'd love to hear other members' thoughts on this topic.

------------------------------
Amanda Bernard CMA,CPA,CFE
Director/Manager
Douglassville PA
United States
------------------------------

Original Message:
Sent: 07-02-2024 03:11 PM
From: David Belnap
Subject: Small- Mid-size Business (SMB) stats - did you know?

What definition is being used for Small and Medium-sized businesses? According to the SBA, this definition varies depending on a company's NAICS code and is determined by revenue size or total number of employees.

------------------------------
David Belnap, CMA, CSCA, CPA
Belnap Accounting
Hollywood FL
United States

Original Message:
Sent: 07-02-2024 08:07 AM
From: Ilya Ilienko
Subject: Small- Mid-size Business (SMB) stats - did you know?

SMBs Globally?

v Over 90% of the business population represents small and medium-sized enterprises (SMEs) globally.

Biggest – tiniest employers:

v SMEs account for 50-60% of total employment worldwide.

Start-Up Bonanza:

v In the U.S., around 543,000 new businesses are started each month, but only about 50% survive five years or more!!!

Emerging markets:

v Developing countries often have higher start-up rates. For ex, Uganda has one of the highest entrepreneurship rates in the world, about 1/3^rd of adults own a business.

Business Ladies:

v Women own 36% of small businesses worldwide, and this number is steadily increasing. In the U.S., women-owned businesses have grown by 58% from 2007 to 2018.

Euro-zone WOW!

v SMEs are often the main drivers of innovation. In the European Union, 99% of all businesses are SMEs, and they are responsible for over half of the EU's GDP, driving innovation and economic growth.

Emerging economies:

v In emerging markets, formal SMEs contribute up to 40% of national income (GDP).

Marketing:

v 73% of small businesses invest in social media marketing, with Facebook being the most popular platform.

Huge $financing$ market:

v There is an estimated $5.2 trillion financing gap for SMEs globally. Access to credit remains one of the biggest challenges for small businesses, especially in developing countries.

Fun:

v New Zealand boasts the highest density of small businesses, with approximately one small business for every ten people.

v The oldest continuously operating small business in the world is the Hōshi Ryokan, a traditional Japanese inn, which has been in business since 718 AD.

v Around 50% of small businesses in the U.S. are home-based

------------------------------
Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
------------------------------

What definition is being used for Small and Medium-sized businesses? According to the SBA, this definition varies depending on a company's NAICS code and is determined by revenue size or total number of employees.

SMBs Globally?

v Over 90% of the business population represents small and medium-sized enterprises (SMEs) globally.

Biggest – tiniest employers:

v SMEs account for 50-60% of total employment worldwide.

Start-Up Bonanza:

v In the U.S., around 543,000 new businesses are started each month, but only about 50% survive five years or more!!!

Emerging markets:

v Developing countries often have higher start-up rates. For ex, Uganda has one of the highest entrepreneurship rates in the world, about 1/3^rd of adults own a business.

Business Ladies:

v Women own 36% of small businesses worldwide, and this number is steadily increasing. In the U.S., women-owned businesses have grown by 58% from 2007 to 2018.

Euro-zone WOW!

v SMEs are often the main drivers of innovation. In the European Union, 99% of all businesses are SMEs, and they are responsible for over half of the EU's GDP, driving innovation and economic growth.

Emerging economies:

v In emerging markets, formal SMEs contribute up to 40% of national income (GDP).

Marketing:

v 73% of small businesses invest in social media marketing, with Facebook being the most popular platform.

Huge $financing$ market:

v There is an estimated $5.2 trillion financing gap for SMEs globally. Access to credit remains one of the biggest challenges for small businesses, especially in developing countries.

Fun:

v New Zealand boasts the highest density of small businesses, with approximately one small business for every ten people.

v The oldest continuously operating small business in the world is the Hōshi Ryokan, a traditional Japanese inn, which has been in business since 718 AD.

v Around 50% of small businesses in the U.S. are home-based