Toward a Better Understanding of SME: Three Different Policies for Three Types of SMEs

  • Dmitri PletnevEmail author
  • Ekaterina Nikolaeva
Conference paper
Part of the Eurasian Studies in Business and Economics book series (EBES, volume 10/1)


The importance of small and medium-sized enterprises in economic development is apparent to governments in almost every country. There are special agencies and programs developed at the national and international levels to foster these types of businesses. Practically every country has a policy framework for SME development. However, almost everywhere the developed policy is based on the assumption that SMEs are relatively homogenous. In the real economy, the concept of SME includes family shops and cafes along with factories with more than 100 workers. Such diverse economic entities have different values, different objective functions, and different expected results. For this reason, these universal recipes do not work for all groups of small and medium-sized enterprises. This article considers a new approach to creating a policy for small and medium-sized enterprises based on three different types of structure—small family business, small growing business, and medium-sized enterprises, each categorized by their features and their most important characteristics. The effective forms of state support have been defined for each form and a principle has been developed from this. All enterprises will have the potential to independently attribute themselves to the form that corresponds in the best way to their behavioral function and structure. The proposed cognitive frame can be used by national governments in different countries for improving SME development policy by endowing them with the ability for self-development.


Business success Small business Medium business Small and medium-sized enterprises SME policy 


  1. Amoroso, S., Audretsch, D. B., & Link, A. N. (2017). Sources of knowledge used by entrepreneurial firms in the European high-tech sector. Eurasian Business Review, 8, 55–70.CrossRefGoogle Scholar
  2. Arshed, N., Carter, S., & Mason, C. (2014). The ineffectiveness of entrepreneurship policy: Is policy formulation to blame? Small Business Economics, 43(3), 639–659.CrossRefGoogle Scholar
  3. Barkhatov, V. I., & Pletnev, D. A. (2015). Uspeshnost’ bystrorastushchikh predpriyatiy srednego biznesa v Rossii [Business success of fast-growing medium-sized enterprises in Russia]. Vestnik PNIPU. Socialnye I Economicheskie Nauki, 4, 65–81.Google Scholar
  4. Bennett, R. (2014). Entrepreneurship, small business and public policy: Evolution and revolution. Abingdon: Routledge.CrossRefGoogle Scholar
  5. Chang, W. (2017). An empirical study on the effects of public procurement on the productivity and survivability of SMEs: Case of the Korean mining and manufacturing sectors (February 2017). KDI Journal of Economic Policy, 39(1), 1–18.CrossRefGoogle Scholar
  6. Chowdhury, F., & Audretsch, D. B. (2014). Institution as looting apparatus: Impact of gender equality and institutions on female entrepreneurship. Eurasian Business Review, 4, 207–225.CrossRefGoogle Scholar
  7. Cirillo, V. (2014). Patterns of innovation and wage distribution. Do “innovative firms” pay higher wages? Evidence from Chile. Eurasian Business Review, 4, 181–206.CrossRefGoogle Scholar
  8. COM. (2011). Communication from the Commission to the European Parliament, the Council, Economic and Social Committee and the Committee of the Regions Review of the “Small Business Act” for Europe [online]. Accessed August 10, 2017, from
  9. Darroll, C. (2012). Micro, small and medium enterprises (MSME) policy strategy for the Republic of Malawi [online]. Accessed August 10, 2017, from
  10. Ebrahimi, P., & Mirbargkar, S. M. (2017). Green entrepreneurship and green innovation for SME development in market turbulence. Eurasian Business Review, 7, 203–228.CrossRefGoogle Scholar
  11. ESTAT. (2017). Assessment of the effectiveness of the EU SME policies 2007–2015, ESTAT and European Economic and Social Committee [online]. Accessed August 10, 2017, from
  12. Japan Small and Medium Enterprise Agency. (2013). Japan’s policy on small and medium enterprises (SMEs) and micro enterprises [online]. Accessed August 10, 2017, from
  13. Lee, J. H. (2010). SME policies of Korea (presentation) [online]. Accessed August 10, 2017, from
  14. Lopez-Acevedo, G., & Tinajero, M. (2010, January 1). Mexico: Impact evaluation of SME programs using panel firm data. World Bank Policy Research Working Paper No. 5186 [online]. Accessed August 1, 2017, from
  15. Mazur, L., & Plakhov, A. (2015). Nalogooblozheniye Malogo Biznesa I Dokhody Byudzhetnoy Sistemy RF [Taxation of Small Business and Revenues of the Budgetary System of Russia]. Vestnik OrelGIET, 32, 154–159.Google Scholar
  16. Ministry of Industry and Commerce of Sri Lanka. (2017). National policy framework for small medium enterprise (SME) development [online]. Accessed August 10, 2017, from
  17. Ministry of Industry and Trade of Tanzania. (2003). Small and medium enterprise development policy [online]. Accessed August 10, 2017, from
  18. Mitra, A., & Jha, A. K. (2015). Innovation and employment: A firm level study of Indian industries. Eurasian Business Review, 5, 45–71.CrossRefGoogle Scholar
  19. OECD. (2004). Promoting SMEs for development, organisation for economic co-operation and development [online]. Accessed August 10, 2017, from
  20. Pletnev, D. A. (2013). Sistemno-Institutsional’naya Teoriya Korporatsii: k Razrabotke Novoy Kontseptsii [The Systematic Institutional Theory of the Corporation: Towards a New Conceptualization]. Ekonomicheskaya Nauka Sovremennoy Rossii, 4(63), 7–18.Google Scholar
  21. RCSME. (2016). Statistika MSP [SME statistics] [online]. Accessed August 1, 2017, from
  22. Simon, H. (1996). Hidden champions: Lessons from 500 of the world’s best unknown companies. Boston, MA: Harvard Business School Press.Google Scholar
  23. Simon, H. (2009). Hidden champions of the twenty-first century. New York, NY: Springer.CrossRefGoogle Scholar
  24. SME PI. (2016). Eastern partner countries 2016: Assessing the implementation of the Small Business Act for Europe. Paris: OECD.Google Scholar
  25. Storey, D. J. (2003). Entrepreneurship, small and medium sized enterprises and public policies. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 473–511). Dordrecht: Kluwer.Google Scholar
  26. Tan, H., & Lopez-Acevedo, G. (2007). Evaluating Mexico’s small and medium enterprise programs. Washington, DC: World Bank.Google Scholar
  27. Vestifinance. (2014). Semeinyi biznes v Rossii i v mire: v chem raznitca? [Family business in Russia and in the world: What the difference?] [online]. Accessed May 18, 2017, from
  28. Yudanov, A. Y. (2010). Pokoritely golubykh okeanov (Firmy-gazelly v Rossii) [The conquerors of the «blue oceans» («gazelles» in Russia)]. Sovremennaya Konkurentsia, 2(20), 27–48.Google Scholar
  29. Yudanov, A. Y. (2012). Ne kak vse: ob upravlencheskoy praktike firm-gazelley [Not as all: The governmental practice of the Gazelles]. Mir Novoy Ekonomiki, 3–4, 6–12.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of Economics of Industries and MarketsChelyabinsk State UniversityChelyabinskRussia

Personalised recommendations