The McKinsey Global Institute has released a report that provides detailed data on the productivity levels of micro-, small-, and medium-size enterprises (MSMEs) in 16 countries that make up over half of global GDP. According to the report, MSMEs in emerging economies have lower productivity compared to large companies, with significant potential for growth.
Increasing the productivity of MSMEs to top-quartile levels could bring significant economic value, equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies. The visual summaries provided in the report showcase the findings for each of the 16 countries included in the research, representing a mix of advanced and emerging economies.
Each country has its own unique MSME performance across different sectors and subsectors, impacting their contribution to job creation, value added, and economic dynamism. Understanding the productivity of MSMEs down to the subsector level is crucial in developing strategies to enhance their productivity and capture more value.
By analyzing MSME productivity at a granular level, businesses and policymakers can identify targeted approaches to improve performance, with strategies varying from country to country based on specific economic factors. This tailored approach allows for more effective prioritization and implementation of initiatives to support MSME growth and enhance overall economic performance.
