Job Creation After the Crisis The role of SME and Entrepreneurship Peter Vikström, PhD Director Entrepreneurship and Enterprise Washington 30 october 2009

Introduction The current crisis poses challenges on policymakers to stabilize the labour market and foster job creation Challenges for policymakers to handle in order to create jobs and sustainable growth –What is necessary apart from macro-economic stabilization? This presentation will depart from a European and specifically Swedish perspective –A small open economy –An internationalised business sector

Contribution of SME:s to the European Economy Rate of change , EU27 Source: Eurostat

Job Creation in SME:s in EU Countries Number of persons employed, rate of change Source: Eurostat (2009)

Employment in SMEs Source: Statistics Sweden (SCB) Index 1993=100

Importance of High-growth Firms Source: SCB, Own calculations Number of jobs created per size class in each three-year period

Stylized Facts for High-growth Firms Younger than other firms Exist in all size classes, even if SME:s are overrepresented Exist in all branches, overrepresented in business services More capital intensive More knowledge intensive – higher educational level

Job Creation - Challenges for Policymakers Stimulating innovative entrepreneurship Enabling growth oriented firms –Access to finance –Committment to open markets and reducing barriers to trade –Reforming the regulatory framework Competetiveness on the national and regional level

The Growth Triangle Entrepreneurship Innovations Competetive regions