ECONOMIC IMPACT
 
ONGOING DATA COLLECTION PROJECT

The ongoing data collection process was launched late 2004 in five field offices: Croatia, Bulgaria, Romania, Macedonia, and Peru. The conclusions drawn from our case studies completed last year were based on a pool of ten companies. Now, with a larger pool of companies (about 20), we have been able to test our findings and strengthen the credibility of our analysis. It should be stressed that these findings are preliminary and subject to change as the sample increases. Further, the analysis will be further strengthened with more data coming in from the institutionalization efforts. As described below, a number of the findings of the initial results are consistent with those of our Phase I project, and we have been able to make several new observations:

Skill Level Analysis:

82 percent of the jobs at the surveyed firms go to unskilled and semi-skilled workers, reconfirming the conclusion of the Phase I study that SMEs generate jobs suitable for the poor.

Top
Gender Analysis:  

The wage disparity between men and women at the firms surveyed is 25 percent (that is, the average wage for females is 75 percent of that for men). Women earn the same or more than men at more than half the firms surveyed, but the overall wage disparity is due to a higher number of employees at the remaining firms with lower salaries for women. The wage disparity at these firms may be due to a higher percentage of women in low skilled jobs, and this will be further explored.

Top
Employee Benefits Analysis:

A number of the firms surveyed provide additional benefits (in addition to the health and pension benefits required by law), bonuses and profit sharing, and training to their employees, consistent with the Phase I case studies.

Top

Impact on Suppliers:

Domestic suppliers account for an average of 50 percent of costs of goods sold and 62 percent of capital expenditures at the companies surveyed. This is significant, as it demonstrates that over half of the companies' non-salaried costs are benefiting other domestic companies rather than foreign companies.

Top

Impact on Local Governments:

An average of 12 percent of revenues went to local governments in the form of taxes for the companies surveyed. This figure improves the Phase I finding that up to 10 percent of SME revenues goes to local governments in the form of tax payments.

Top

Exports:

Out of the 21 SMEs surveyed, 6 of the SMEs export their products or services, thereby contributing to foreign exchange reserves.

Top

Impact on Community:

Six out of 19 companies have sponsored local community programs or donated to charities in the past five years, contributing a total of $12,048 to community programs and charities in 2004. The figure can be considered significant given the size of the firms and the countries in which they are located, and some non-monetary community contributions are not captured here.

Top
 

 

Economic Impact

ONGOING DATA COLLECTION PROJECT

The ongoing data collection process was launched late 2004 in five field offices: Croatia, Bulgaria, Romania, Macedonia, and Peru. The conclusions drawn from our case studies completed last year were based on a pool of ten companies. Now, with a larger pool of companies (about 20), we have been able to test our findings and strengthen the credibility of our analysis. It should be stressed that these findings are preliminary and subject to change as the sample increases. Further, the analysis will be further strengthened with more data coming in from the institutionalization efforts. As described below, a number of the findings of the initial results are consistent with those of our Phase I project, and we have been able to make several new observations:

Skill Level Analysis:

82 percent of the jobs at the surveyed firms go to unskilled and semi-skilled workers, reconfirming the conclusion of the Phase I study that SMEs generate jobs suitable for the poor.

Gender Analysis:

The wage disparity between men and women at the firms surveyed is 25 percent (that is, the average wage for females is 75 percent of that for men). Women earn the same or more than men at more than half the firms surveyed, but the overall wage disparity is due to a higher number of employees at the remaining firms with lower salaries for women. The wage disparity at these firms may be due to a higher percentage of women in low skilled jobs, and this will be further explored.

Employee Benefits Analysis:

A number of the firms surveyed provide additional benefits (in addition to the health and pension benefits required by law), bonuses and profit sharing, and training to their employees, consistent with the Phase I case studies.

Impact on Suppliers:

Domestic suppliers account for an average of 50 percent of costs of goods sold and 62 percent of capital expenditures at the companies surveyed. This is significant, as it demonstrates that over half of the companies' non-salaried costs are benefiting other domestic companies rather than foreign companies.

Impact on Local Governments:

An average of 12 percent of revenues went to local governments in the form of taxes for the companies surveyed. This figure improves the Phase I finding that up to 10 percent of SME revenues goes to local governments in the form of tax payments.

Exports:

Out of the 21 SMEs surveyed, 6 of the SMEs export their products or services, thereby contributing to foreign exchange reserves.

Impact on Community:

Six out of 19 companies have sponsored local community programs or donated to charities in the past five years, contributing a total of $12,048 to community programs and charities in 2004. The figure can be considered significant given the size of the firms and the countries in which they are located, and some non-monetary community contributions are not captured here.