The performance of small and medium enterprises: An overview using the growth and performance survey

This paper provides an overview of the performance of small and medium private enterprises (SMEs) using the growth and Performance Survey. Three aspects of performance are considered: profitability, productivity and innovation. SMEs are defined as enterprises with less than 100 employees and their performance is contrasted with the performance of firms with more than 100 employees. Comparisons are made at the 2 digit ANZSIC level. SMEs as a group tend to have higher median profitability (than large firms) in manufacturing. SMEs tend have lower median labour productivity and higher median capital productivity than large firms. This reflects the fact that SMEs have lower capital to labour ratios. In addition, SMEs seem to rely more on leased capital.