Asutosh Padhi’s Post

Micro-, small, and medium-size enterprises (MSMEs) form the backbone of economies. Across the 16 countries examined by the McKinsey Global Institute in a new report, MSMEs account for two-thirds of business employment in advanced economies—and almost four-fifths in emerging economies—as well as half of all value added. Boosting their productivity could yield significant value, creating a win-win economic fabric for all companies. More at https://mck.co/msme #smallbusiness #productivity

🌟 Enhancing productivity: The cornerstone of business resilience and prosperity! 🌟 According to McKinsey, boosting #productivity remains key to fostering healthier incomes and fortifying business resilience, especially amidst today's global uncertainties and economic transformations. In the wake of geopolitical shifts and evolving manufacturing and service landscapes, empowering the world's MSMEs (Micro, Small, and Medium Enterprises) becomes imperative. These enterprises are vital for job creation, economic growth, and value generation. Efforts to unlock the productivity potential of MSMEs demand thoughtful and targeted actions. Only through a granular understanding of their productivity can we enact effective strategies. Let's harness this opportunity for a win-win scenario across companies, both small and large. 📊 Dive deeper into the study by McKinsey & Company: https://lnkd.in/dgNdaG28 #BusinessProductivity #MSMEs #EconomicGrowth #Resilience #BusinessInsights #McKinseyStudy

I have always known the enormous value that Micro, Small and Mid-size Businesses (MSMEs) bring, not only to global economies, but to society and communities across the world. This report from McKinsey & Company brings that to the fore. Undeniably, productivity is a challenge for ALL businesses to constantly focus on, especially given the opportunity and benefit unlocking productivity can bring. As McKinsey says: "Raising productivity is, and always has been, the optimal route to healthier incomes and business resilience. In a world beset by uncertainty amid geopolitical tensions and shifts in manufacturing and services footprints, raising the game of the world’s MSMEs—which are so central to jobs, livelihoods, value creation, and economic growth—is a priority. The potential is large, but efforts to capture it need to be thoughtful and very likely targeted. Only by having a granular understanding of MSME productivity can effective action be taken. That action can create a win-win for all companies, small and large". Thankfully in the UK we have Be the Business who are really tackling our productivity puzzle, but we can all do more! Have a read and see what it says to you..... Thomas Jardine & Co #productivity #smallbusiness #microbusiness #familybusiness #unlockchange #largebusiness #collabortations

Delighted to share our most recent McKinsey Global Institute report, A microscope on small businesses: Spotting opportunities to boost productivity” ➡️ mck.co/msme A couple of highlights: ◾ Micro-, small, and medium-size enterprises (MSMEs) account for more than two-thirds of business employment and half of the value added. ◾ Small business productivity is only half that of large companies. Boosting their productivity relative to large companies could yield significant value — equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies. ◾ Relative productivity of MSMEs and large companies varies widely across subsector and country. ◾ MSME and large company productivity move in tandem in most subsectors, indicating spillovers if the right conditions are created. ◾All stakeholders have a role to play in developing granular productivity strategies. In subsectors where both small and large companies lag, infrastructure and policy improvements can target both together. Where MSMEs struggle but large enterprises outperform, building networks among them helps. Even where both large and small companies do well, strengthening their interactions could boost productivity.

Micro-, small, and medium-size enterprises (#MSMEs) are the lifeblood of economies around the world. They account for at least 90% of all businesses, roughly half of value added, and at least two-thirds of business employment. But small businesses lag behind large companies on productivity. On average, their labor productivity, or value added per worker, is half that of their larger peers. Accelerating productivity growth has always been the sure way to deliver long-term prosperity, and MSMEs can—must—play a crucial role. Their contribution is potentially even more important, amid the beginnings of a reconfiguration of global trade patterns. If MSMEs were to narrow the productivity gap with large companies, not only could that breathe new life into economy-wide productivity, employment, and growth, but economies and companies could raise their resilience in an uncertain world. The question is how? In a new McKinsey & Company global report from McKinsey Global Institute, my colleagues Anu Madgavkar, Marco Piccitto, Olivia White, María Jesús Ramírez Larraín, Jan Mischke and Kanmani Chockalingam, examined MSMEs in 16 countries: the #UnitedStates, #Germany, #Australia, the #UnitedKingdom, #Italy, #Israel, #Japan, #Spain, #Poland, #Portugal, #Mexico, #Brazil, #Indonesia, #India, #Nigeria, and #Kenya, and say the route to higher productivity lies in creating a win-win economic fabric for all companies. Check out the how, in a data-rich 56-page report, free to read, share, download here from McKinsey Publishing and edited by Executive Editor Janet Bush, with data visualized by Juan Velasco. https://lnkd.in/dhQu7q9B

MSMEs are vital for growth and jobs, but struggle with productivity. The route to higher productivity lies in creating a win-win economic fabric for all companies. Boosting MSME productivity relative to large companies could yield significant value. Small business productivity is only half that of large companies, and less in emerging economies. Raising MSMEs to top-quartile levels relative to large companies is equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies.

📈 **Spotlight on Small Businesses: Unlocking MSME Productivity!** Micro, small, and medium enterprises (MSMEs) are essential for driving global growth and job creation. In Pakistan, many MSMEs struggle due to low productivity and innovation. Boosting their productivity can have transformative impacts on the economic landscape. 1. **Economic Impact:** MSMEs account for two-thirds of business employment in advanced economies and nearly 80% in emerging economies, significantly contributing to value added. 2. **Productivity Gap:** Despite their importance, small businesses' productivity is only half that of large companies. Closing this gap could potentially add 5% to GDP in advanced economies and 10% in emerging ones. 3. **Sector Focus:** Productivity levels vary across sectors and countries. Eight key subsectors in manufacturing are crucial in driving over 60% of the value needed to narrow this productivity gap. 4. **Collaboration Benefits:** Collaboration between MSMEs and large companies is mutually beneficial. For example, automotive MSMEs can enhance their operations through interactions with major manufacturers. 5. **Strategic Actions:** - Policy Improvements - Network Building - Tailored Solutions 6. **Case Studies:** - Japan: Auto MSMEs flourish by integrating with large companies. - UK: Construction MSMEs benefit from improved market access and financial support. 🔍 **The Path Forward:** Cultivating an environment where MSMEs can prosper unlocks substantial economic value, generates employment opportunities, and enhances resilience in a dynamic global market. #MSMEs #SmallBusiness #Productivity #EconomicGrowth #BusinessDevelopment Find out more at the link below.

This article highlights imbalances and growth opportunities for small and medium-sized organizations (SMEs). According to McKinsey Global Institute research, SMEs account for over 90% of all businesses; however, their productivity significantly lags that of larger companies by about 50% in advanced economies. Some critical areas of opportunity are clear: 1. Streamlining operations through digitization; 2. Forming alliances as suppliers to more prominent original equipment manufacturers (OEMs); 3. Partnering with larger companies and institutions to access talent pipelines and training programs.

Business organizations, including the academe micro-small & medium enterprises (MSMEs) and government institutions, must now change the way they transform because the world after the pandemic requires accelerated organizational change, continuous business reinvention, and innovation. Businesses must seize opportunities to break boundaries, achieve sustainable growth, and consider practices that encompass customers, workforce, community, and finance. We put our clients at the center of our strategy, operations, and processes, helping them achieve their full potential through our expertise. We take a connected and holistic view of different client sectors, industries, and the broader business landscape to help them maximize new opportunities and manage risk – creating long-term value and sustainable growth. Visit: https://lnkd.in/gpTqQXmT to learn more about our services. #mihwariyph

So much insight in this year's CEO Survey. And PwC UK's 27th #CEOSurvey reveals investment in skills and technology are high on the agenda, as UK CEOs transform their organisations to target new opportunities. Find out more: https://pwc.to/3HsTyNb