Business Success

 

Business Architect

Value-driven Economic and Social Development e-Coach for Asia-Pacific Countries

SMEs in Asia and the Pacific

 

Vadim Kotelnikov icon Vadim Kotelnikov

Author of ICT-powered SMEs

 

SME Headcount-based Definitions

Number of employees should be fewer than

Australia

100 (manufacturing) / 20 (services)

Bangladesh

100

Canada

500 (manufacturing) / 50 (services)

China

100

Indonesia

100

Japan

100 (manufacturing) / 50 (services)

Korea R

300 (manufacturing) / 20 (services)

Lao PDR

100

Malaysia

150 (manufacturing) / 50 (services)

New Zealand

20

Pakistan

250

Philippines

200

Russia

250

USA

500

Vietnam

300

 

The Role of SMEs

 

 

SMEs' Share of Jobs

SMEs' Share of GDP

Australia

50%

23%

China

70%

60%

India

25%

22%

Japan

72%

56%

Pakistan

40%

78%

Philippines

66%

32%

Korea R

76%

46%

New Zealand

59%

35%

Russia

13%

10%

United States

52%

48%

Vietnam

74%

24%

 

Business e-Coach for Asia-Pacific SMEs

Self Education Online in Asia-Pacific Countries

 

 More about Social Entrepreneurs in Asia

Throughout Asia and the Pacific, as well as the entire world, small-and medium-sized enterprises (SMEs) play a vital role in their economies, often acting as the primary drivers of job creation, innovation, and economic growth.

Strengths and Weaknesses of SMEs

SMEs, both in size and shape, are not uniform across Asia and the Pacific. Understanding the similarities and differences of various approaches facilitates deeper insights. The maximum number of employees is the most often used SME criteria. This number, however, varies across countries. The following table shows the differences in definitions of SMEs in various countries.

 

Definitions of what constitutes an SME vary quite widely from country to country, and often within single countries, depending on the business sector concerned.

  • China. The categorization of SMEs is sector specific and is divided between small and medium segments. In the industrial sector, those employing between 200-2000 people and having sales between 30-300 m yuan or assets in the range of 40-400m yuan are considered small and those above this are medium level enterprises.

  • India. A small enterprise is one where the investment in plant and machinery is more than Rs.2,500,000 but does not exceed Rs.50,000,000. A medium enterprise is one where the investment in plant and machinery does not exceed Rs.100,000,000.

  • Malaysia. SMEs are those that have less than 50 employees in agriculture or services, and in case of manufacturing sector enterprises, they should employ less than 150 employees. On the basis of turnover, SMEs are those that have sales below RM 5m in the agriculture and services and below RM 25m in the manufacturing sector.

  • Thailand. Depends on the business sector. Different criteria, based on number of employees and fixed capital size.

  • United States. The Small Business Administration sets small business criteria based on industry, ownership structure, revenue and number of employees (which in some circumstances may be as high as 1500, although the cap is typically 500). The threshold of fewer than 10 employees is used for small offices.