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Small and medium-sized enterprises, the regulatory framework and job creation

Author

Listed:
  • Wolfgang Gerstenberger
  • Carola Boede

Abstract

The importance of small and medium-sized enterprises (SMEs) for growth and employment has been confirmed in numerous studies. In Germany and in the other EU countries, small enterprises have made a significant contribution to expanding employment and have more than offset the decline in jobs in large corporations. In the group of companies with one to nine employees, 2.9 million more people found jobs in the second half of the 1990s than in the first half. Especially in the small company size categories, the growth in employment tends to be lower in countries that place high administrative burdens on business start-ups. In a European comparison, Germany places particularly high administrative barriers in the way of business start-ups. German SMEs are additionally faced with one of the least transparent regulation systems in Europe. In light of the connection between the regulatory/administrative framework and the employment dynamics of SMEs, thought should be given to ways of improving the business environment by changing government regulations.

Suggested Citation

  • Wolfgang Gerstenberger & Carola Boede, 2000. "Small and medium-sized enterprises, the regulatory framework and job creation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(31), pages 23-29, December.
  • Handle: RePEc:ces:ifosdt:v:53:y:2000:i:31:p:23-29
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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