Factors influencing the job-creation potential of SMEs

The figure above, derived from Eurofound’s recent report on Job creation in SMEs, illustrates the bundle of factors that determine whether an SME will create jobs – some relating to the company itself (internal) and others relating to the economic and institutional environment in which it operates (external). 

Several of the elements are interrelated or have an influence on each other. The strength of the influence and whether it is a driver or an obstacle depends on the individual company and the framework conditions in which it operates. 

The research points to the need for comprehensive public support packages to foster the job-creation potential of SMEs.

Download the 'Job creation in SMEs: ERM annual report 2015' report here