RCC is pleased to announce this talk by Luis Antonio García Tabuenca, RCC Fellow and Visiting Scholar at the Center for International Development at the Harvard Kennedy School
It is widely recognized in the economic literature and major reports that in modern economies, the Small and Medium Enterprise (SME) plays an important role, as much for its strong presence in the productive sector as for value added and employment generated. In the EU (Eurostat, 2014), SMEs constitute the backbone of the production system, although there are important differences between countries. This work focuses on the differences between the core countries of the EU and the Southern ones. The analyzed data support that SMEs are more prevalent in the last group, and the research also examines other hurdles and thresholds that may be the underlying cause of the limited or almost zero growth of these smaller sized companies. This is also associated with a lower labor productivity. Furthermore, greater financial pressure that limits access to credit in a business sector where SMEs prevail may hinder and delay recovery.
Contact: Kim Conant