International Comparative Analysis of the Role of Small and Medium-Sized Enterprises in the National Economy: A Statistical Study

The article addresses a variety of approaches to compiling indicators for development of the small and medium-sized enterprises (SME) sector in Russia and some developed economies and developing economies. A point of emphasis is various identification criteria for SME attributed to objective institutional characteristics of the countries, differences in economic structure, and objectives of government policy. The study aims at comparing SME sector development levels in Russia and other countries to identify best practices and pinpoint target settings (lay down guidelines) for entrepreneurship policymaking. The article discusses the criteria used in different countries to define small and medium-sized enterprises. It outlines key challenges related to using cross-cutting criteria developed by international organizations. The paper suggests adjustments to defining the role of the SME sector in the Russian economy.  The authors reveal differences between the way international organizations and Russian official statistics present and report statistics; this concerns the coverage of subjects of statistical observation that are defined as small and medium-sized enterprises. International comparisons refer to the small and medium-sized enterprises in the business sector (that is, without the banking sector and the public sector), while in Russia they usually refer to official statistics for the entire economy.  According to the authors, when using the valid approach, the role of small and medium-sized enterprises in the Russian economy is comparable with the corresponding values for the large countries with capital-intensive industries. Small and medium-sized entrepreneurship in Russia differs from that in developed countries in the ratio of private and public sectors, the export potential of small firms, the prevalence of technology startups and the ratio of open and shadow economic activities. The article emphasizes the importance of analyzing the role of small and medium-sized enterprises in the economy when making management decisions of a strategic nature. The SME sector performs many important socio-economic functions, including job creation and employment, the contribution to value-added production and exports, economic growth and increased competitiveness of the economy, personalized customer satisfaction, the creation of new industries and economic diversification.

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