Small and medium enterprises are the engines that keep cities growing. In the EU, SMEs account for 99 percent of all enterprises.
Small and medium enterprises are the engines that keep cities growing. In the European Union, SMEs account for 99 percent of all enterprises, employ two-thirds of all workers and contribute more than 50 percent of a city’s gross value added. In the emerging markets, their value tends to be far higher. No wonder city leaders around the world are making SME development a high priority.
Small and Medium Enterprise (SME) development services are focused on helping new businesses — typically startups — establish and grow their enterprises. Services may include a wide range of activities from the provision of business advice and networking support through to the development of financial and non-financial incentives and investment into supportive resources and/or infrastructure.
Operating and capital cost per SME consultation. This measure combines reported operating costs and capital costs for SME development services and divides the total by the number of reported consultations.
Points to consider:
Interestingly, very few cities participating in our benchmarking exercise seem to measure the annual change in employment created by SMEs. While other measures may be more readily available, this suggests that city leaders may not know the actual impacts of their investments and their influence on employment, tax revenues and service demand.
SMEs in Adelaide enjoy a ‘one-stop-shop’ window that provides business advice and support to help entrepreneurs start and grow their business and navigate the applicable regulatory processes.
Authorities in Kazan have arranged ‘rent holidays’ for small businesses, offering relief from rent on municipal properties for up to five years.
Entrepreneurs in Poznan can use Poland’s first ‘free urban co-working space’, a collaborative environment for around 30 people, supported with free Wi-Fi and a ‘hot desk’ to encourage collaboration while chilling out.
The City of Philadelphia has created the Capital Consortium and Biz Coach programs to help increase investment into small (primarily minority-owned) neighborhood-based businesses. The city has also focused on high school and college students providing them a bridge to the business world through.