Are small businesses really small?

The reality behind the curtain where small businesses are considered as small is different.Infact the large businesses are small and small businesses are really big.I know this may sound astonishing and you will be scratching your head to comprehend the previous sentence.Well, to put it in simple words,it is found that in any country,SMEs(small and medium enterprises)covers the bulk in terms of numbers ,while the large businesses form a small share of the total.A data from OECD shows that if the number of employees are the indicator of the size of a business,then in manufacturing enterprises large businesses are just 5.6% of the total.(large businesses implies one who employs 250 or more people).

Less than 10---------------23.6
10 -19.....................................27.9
20-49---------------------24.4
50-249..................................18.5
More than 250------------5.6
(Less than 10 means 23 % of all manufacturing enterprises in India by number had less than 10 employees).

But Indian manufacturing sector is more skewed towards larger organization sizes.This could be because of lower levels of automation and the general business environment.But there is huge space for even more small,medium and micro enterprises and their contributions will be even more significant adding to the economy of the country.

Posted by:Jaspreet