The Role of SMEs in extra-EU Exports: Key performance indicators

Abstract

This paper examines the growing importance of EU exporting small and medium enterprises (SMEs) for EU exports in recent years in terms of standard metrics (the number of exporting SMEs, their share in total EU exports) but also in respect to several key performance indicators, such as export competitiveness, digital intensity of their exports, greenhouse gas (GHG) emissions and jobs supported by EU exporting SMEs. The empirical evidence suggests that the number of EU exporting SMEs has grown steadily over time. EU exporting SMEs seem to perform better than the OECD average in sectors of medium digital intensity. In particular, SMEs are competitive in digitally intensive goods, where EU large firms do not seem to be equally successful. SME exports have also lower GHG emissions than average levels, with 70% of SME exports belonging to low and medium-low emission intensity. Finally, yet importantly, EU SME exports are a major driver for exportled job creation: over 13 million jobs in Europe depend on EU SME exports.

Keywords: Trade, SMEs, jobs, competitiveness, globalisation, digital, CO2 intensity

JEL Classification: F13, F14, F6