1. Job Creation After the Crisis The role of SME and Entrepreneurship Peter Vikström, PhD Director Entrepreneurship and Enterprise Washington 30 october 2009

2. Introduction The current crisis poses challenges on policymakers to stabilize the labour market and foster job creation Challenges for policymakers to handle in order to create jobs and sustainable growth –What is necessary apart from macro-economic stabilization? This presentation will depart from a European and specifically Swedish perspective –A small open economy –An internationalised business sector

3. Contribution of SME:s to the European Economy Rate of change 2004-2006, EU27 Source: Eurostat

4. Job Creation in SME:s in EU Countries Number of persons employed, rate of change 2004-2006 Source: Eurostat (2009)

5. Employment in SMEs 1993-2008 Source: Statistics Sweden (SCB) Index 1993=100

6. Importance of High-growth Firms Source: SCB, Own calculations Number of jobs created per size class in each three-year period

7. Stylized Facts for High-growth Firms Younger than other firms Exist in all size classes, even if SME:s are overrepresented Exist in all branches, overrepresented in business services More capital intensive More knowledge intensive – higher educational level

8. Job Creation - Challenges for Policymakers Stimulating innovative entrepreneurship Enabling growth oriented firms –Access to finance –Committment to open markets and reducing barriers to trade –Reforming the regulatory framework Competetiveness on the national and regional level

9. The Growth Triangle Entrepreneurship Innovations Competetive regions