The Performance of Small and Medium Enterprises: An Overview Using the Growth and Performance Survey
Melbourne Institute Working Paper No. 01/99
Date: January 1999
This paper provides an overview of the performance of small and medium private enterprises (SMEs) using the Growth and performance Survey. Three aspects of performance are considered: profitability, productivity and innovation. SMEs are defined as enterprises with less than 100 employees and their performance is contrasted with the performance of firms with more than 100 employees. Comparisons are made at the 2 digit ANZSIC level. SMEs as a group tend to have higher median profitability and higher median capital productivity than large firms. This reflects the fact that SMEs have lower capital to labour ratios. In addition, SMEs seem to rely more on leased capital.