Small business, big potential
McKinsey | At a glance
- Micro, small, and medium-sized enterprises (MSMEs) are essential to the US economy. They employ nearly 60% of the workforce and contribute almost 40% of national value added, often evolving into significant players within larger corporations.
- MSMEs in the US exhibit only half the productivity of large firms—compared to 60% in other advanced economies. Bridging this productivity gap, which represents 5.4% of US GDP, is crucial given global production shifts.
- Performance among MSMEs varies by state and metropolitan area due to sector mix; however, overall trends show that small and large businesses’ performance is interconnected as local conditions affect all business sizes.
- The relationship between small and large businesses plays a vital role in enhancing overall productivity. Strengthening networks and collaboration—through supply chains, industry clusters, and customer interactions—can enable MSMEs to leverage advantages in technology, human capital, market access, and finance.
Source: https://www.mckinsey.com/mgi/our-research/americas-small-businesses-time-to-think-big