OECD SME and entrepreneurship outlook 2021.

Description

Preface Foreword Acknowledgements Acronyms and abbreviations Acronyms Abbreviations Country groupings Country notes Executive summary 1 SME and entrepreneurship performance in times of COVID-19 One year amidst a global pandemic and a historical economic crisis Assessing risks and vulnerabilities during the COVID-19 crisis The COVID-19 shock has been unprecedented Some sectors and regions with disproportionate representation of small- and medium-sized enterprises (SMEs) were largely exposed to COVID-19 restrictions The crisis has slowed recent improvements in access to finance, especially for SMEs Emerging evidence on the economic impact of the crisis on entrepreneurship and SMEs Start-up rates fell sharply at the height of the crisis but have since made up lost ground Government support has avoided a wave of bankruptcies so far Young firms, self-employed and entrepreneurs were confronted with specific challenges during the crisis Among SMEs, the crisis had a disproportionate impact on the activity of smaller firms and those operating in the sectors most affected by lockdown measures Smaller firms, and those operating in the sectors most affected by lockdown measures, were more likely to close A significant share of SMEs remaining open recorded major reductions in sales SMEs in the sectors most affected by lockdown measures were hit hardest but those selling online did better Policy responses were quick and strong overall, but with differences across countries and difficulties in reaching younger and smaller firms, self-employed workers and entrepreneurs Within countries, SMEs in the sectors most affected by lockdown measures and those with larger declines in sales benefitted most from government support throughout 2020 Younger and smaller SMEs were less likely to receive government support At the end of 2020, the majority of SMEs were still in need of support The proportion of SMEs that benefitted from government support in 2020 varied significantly across countries Looking ahead, more research will be needed to fully evaluate the efficiency of government support measures to SMEs References Notes Part I SME and entrepreneurship policies for a fair and sustainable recovery Part I. SME and entrepreneurship policies for a fair and sustainable recovery Introduction One year amidst a global pandemic and a historical economic crisis References 2 SME indebtedness and future financing for productive investment Introduction Prior to the COVID-19 crisis, SME&E financing conditions were broadly favourable The crisis has raised concerns about SME&E financing but risks may not materialise Concerns about SME indebtedness will need to be addressed in order to promote the recovery Looking ahead, there is a growing trend towards sustainable finance worldwide, including through recovery packages References Notes 3 Globalisation versus relocalisation: The core role of SMEs in rising place-based industrial policies Introduction Prior to COVID-19, the expansion of GVCs and the global fragmentation of production have already slowed down The COVID-19 crisis has deeply disrupted GVCs with differentiated impacts across firms, industries and places COVID-19 has reignited the debate about supply chain risks and industrial sovereignty References Notes 4 COVID-19 crisis: A fast-track path towards more innovation and entrepreneurship? Introduction Prior to COVID-19, digitalisation and open innovation provided SMEs with new opportunities that were still to materialise The COVID-19 crisis gave a big push to SME digitalisation and to (some forms of) innovation and entrepreneurship Digitalising, reskilling and greening to build back better Annex 4.A. Overview of national structural policies by country References Notes Part II Country profiles and methodology Part II. Country profiles and methodology 5 Methodology of the country profile COVID-19 impact on the SME&E sector Stringency of government measures Firm creation and firm exits/bankruptcies Policy framework and policy spotlight Factors of SME&E structural vulnerability Size of the MSME sector Economic exposure to lockdowns and business disruptions Exposure to international trade and GVCs Sources of SME&E resilience Digital readiness Cash reserves and government’s liquidity support Entrepreneurship regulatory framework Innovation skills Caveats and caution in interpretation References 6 Country Profiles Australia Austria Belgium Canada Chile Colombia Costa Rica Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Latvia Lithuania Luxembourg Mexico The Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Country notes Australia Austria Belgium Canada Chile Colombia Costa Rica Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Latvia Lithuania Luxembourg Mexico The Netherlands New Zealand Norway Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Country-specific sources Australia Austria Belgium Canada Costa Rica Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Lithuania Luxembourg Mexico New Zealand Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United States References Annex 6.A. Sources and definitions of benchmarking indicators Blank Page