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

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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

Název v anglickém jazyce

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

Popis výsledku anglicky

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

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

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

Název statě ve sborníku

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

Počet stran výsledku

8

Strana od-do

81-89

Název nakladatele

Instytut Badań Gospodarczych

Místo vydání

Olsztyn

Místo konání akce

Olsztyn

Datum konání akce

26. 6. 2025

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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