International Comparison of Small Business Employment: CEPR

A recent report was released by the Center for Economic and Policy Research “An International Comparison of Small Business Employment” in 2009 -08.

Key Findings
When compared with United States, Luxembourg has a lower share of 6.1 percent whereas US has 7.2 percent. Other than mentioned below, 14 other rich countries are having higher proportions of self-employment.

  • United States – 7.2 percent.
  • Luxembourg – 6.1 percent.
  • France – 9.0 percent
  • Sweden – 10.6 percent.
  • Germany – 12.0 percent.
  • United Kingdom – 13.8 percent.
  • Italy – 26.4 percent.

Lowest shares of employment in small businesses in manufacturing was observed in United States. Just about 11.1 percent of the US manufacturing workforce is in initiative with fewer than 20 employees. About 18 other rich countries have a higher share of manufacturing employment in enterprises including:

  • Luxembourg – 8.5 percent.
  • Ireland – 9.6 percent.
  • United States – 11.1 percent.
  • Germany – 13.0 percent.
  • Sweden – 14.4 percent.
  • France – 18.0 percent.
  • United Kingdom – 18.1 percent.
  • Italy – 30.9 percent.

Ireland and Luxembourg only have a lower share of manufacturing employment enterprises with less than 20 employees.

United States small businesses have a much lower share of employment in the 2 high tech fields. Second lowest share of computer-related service employment is seen in United States in firms with less than 100 employees which is 32.0 percent. Only Spain had a lower share of about 27.0 percent. Other 13 countries with available data had a higher proportion of employment in this sector in small businesses which include:

  • Spain – 27.0 percent.
  • United States – 32.0 percent.
  • France – 44.7 percent.
  • Germany – 48.7 percent.
  • Sweden – 49.4 percent.
  • United Kingdom – 67.5 percent.
  • Italy – 73.2 percent.

In the same way, the United States has the third lowest share of research and development related employment in firms which have less than 100 employees which is 25.3 percent. Only UK and Netherlands have 22.5 and 20.3 respectively have lower share. While the about 9 countries with available data had a higher proportion of employment in this sector in small businesses. Which includes

  • France – 33.1 percent.
  • Sweden – 34.4 percent.
  • Germany – 35.0 percent.
  • Italy – 74.8 percent.