Impact analysis of macroeconomic variables on SMEs employment performance in EU countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F25%3A63599678" target="_blank" >RIV/70883521:28120/25:63599678 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Impact analysis of macroeconomic variables on SMEs employment performance in EU countries

Original language description

Abstract Research background: Empirical evidence confirms that SMEs are major job creators. However, it should not result in less focus on SME development because their contribution to job creation is significant. The macroeconomic factors influence SMEs’ decision-making process, i.e., investment strategies, recruitment practices. Earlier studies have analyzed SMEs’ role in employment genera tion from World Bank enterprise survey data. Interestingly, employment, a direct indicator of SMEs’ contribution to social and economic stability, lacks empirical evidence. Purpose of the article: The purpose of this study is to investigates the impact of small and me dium-sized enterprise (SME) employment performance on macroeconomic variables across 27 European Union (EU) countries. Methods: Leveraging descriptive statistics, correlation analysis, and regression modeling, the research evaluates how financial, fiscal, and economic indicators influence SME employment dy namics. The dependent variable, Average Employment, is analyzed against key independent vari ables, including net turnover, GDP growth, tax rates, inflation, interest rates, and credit availability. Secondary data has been analyzed, sourced from World Bank and EUROSTAT. Findings and values added: The analysis reveals a strong positive correlation between Average Employment and Net Turnover underscoring the critical role of SME revenue in driving job crea tion. However, regression results show that this relationship becomes statistically insignificant due to multi-collinearity with closely related financial variables. Paradoxically, GDP Growth exhibits a weak negative correlation with employment, suggesting that economic expansions may not uniformly benefit SMEs, potentially due to automation or sectoral shifts. Other macroeconomic factors, such as Inflation Rate, Interest Rate, and Total Tax, demonstrate negligible statistical signif icance, highlighting SMEs’ resilience to short-term monetary fluctuations and tax pressures. The findings advocate for SME-centric policies prioritizing fina

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

CONTEMPORARY ISSUES IN ECONOMY PROCEEDINGS OF THE 13th INTERNATIONAL CONFERENCE ON APPLIED ECONOMICS: ECONOMICS AND FINANCE

ISBN

978-83-65605-76-4

ISSN

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e-ISSN

2544-2384

Number of pages

8

Pages from-to

81-89

Publisher name

Instytut Badań Gospodarczych

Place of publication

Olsztyn

Event location

Olsztyn

Event date

Jun 26, 2025

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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