Small and medium-sized enterprises (SMEs) have always been described as the backbone of economies. But a new OECD study reveals something far more powerful: a small group of fast-growing SMEs—called scalers—are quietly becoming the real drivers of jobs, productivity, and competitiveness across advanced economies. The report Unleashing SME Potential to Scale Up shows that unlocking SME growth is no longer a development goal; it is now an economic necessity.
SMEs: Bigger Impact Than Big Business
Contrary to common perception, SMEs collectively contribute as much economic value as large corporations and create even more jobs. Across OECD countries, SMEs with 10–249 employees account for roughly 40% of employment and nearly the same share of value added in the private business economy. Even more striking, for every ten jobs created by large firms, SMEs generate sixteen additional jobs on average.
However, most SMEs grow slowly—or not at all. Half of them expand employment by 1% or less annually, meaning only a small minority achieve rapid expansion. And that minority matters enormously.
Meet the “Scalers”: Growth Champions
The OECD labels rapidly growing firms as scalers—SMEs that expand employment or turnover by at least 10% annually over three consecutive years. Though they represent only about 16–27% of SMEs across studied countries, their economic contribution is outsized.
Employment scalers generate between 41% and 62% of all new SME jobs, while turnover scalers account for more than half of SME revenue growth. A smaller elite group—high-growth scalers growing above 20% annually—creates nearly two-thirds of all new jobs and turnover gains among scalers.
In simple terms, a tiny fraction of SMEs is responsible for most SME-driven economic expansion.
Productivity: The Real Competitive Edge
Scaling up is not only about hiring more staff or increasing sales. Scalers are more productive even before their growth phase begins. On average, they are already 20% more productive than other SMEs, and after scaling up, that advantage rises to around 35%.
This productivity boost benefits entire economies. As investment and talent flow toward faster-growing firms, overall economic efficiency improves. The report estimates that without scalers, multi-factor productivity among SMEs would have been about 6% lower across studied countries.
Growth, therefore, is not just expansion—it is productivity-led competitiveness.
Digital and Knowledge Sectors Lead the Way
Scaling opportunities differ by sector. Advanced tradable services, digital-intensive industries, and medium-to-high-tech manufacturing show the highest share of firms scaling up.
Digital businesses especially demonstrate a new phenomenon: firms can now “scale without mass.” Technology enables companies to expand revenues without proportional increases in workforce or physical infrastructure, explaining why turnover scalers often outnumber employment scalers.
Meanwhile, sectors like construction display volatile scaling patterns, with firms expanding rapidly during contract booms but often shrinking afterward.
Scaling Up Is Not Risk-Free
Growth also introduces challenges. While 54–73% of scalers maintain or continue growing after expansion, others struggle with higher debt costs, operational complexity, and workforce pressures. About one in ten scalers shrink back below their original size, and a similar share exits the market altogether.
Young firms tend to follow an “up-or-out” path—either scaling again or exiting—while mature firms grow more steadily but cautiously. Scaling, therefore, is both an opportunity and a stress test for business resilience.
Policy Matters: Broad Support Plus Targeted Help
The OECD stresses that successful scale-up ecosystems combine two strategies. First, governments must create strong general conditions for all SMEs: access to finance, digital tools, innovation networks, and skilled talent. Second, targeted interventions should focus on firms with high growth potential, particularly tech-driven and export-oriented SMEs.
To help governments benchmark policies, the OECD has mapped more than 2,500 SME support measures across finance, trade, innovation networks, data governance, and skills development. Financial support remains the most common tool, but coordinated strategies across ministries and agencies are essential for real impact.
Scaling SMEs is not about picking winners—it is about enabling more firms to win.
The Bottom Line
The future of economic growth may not lie with industrial giants but with agile, innovative SMEs that manage to break through growth barriers. Countries that enable more firms to scale successfully will likely lead in productivity, competitiveness, and job creation.
In the global race for economic leadership, helping SMEs scale up may be the smartest growth strategy of the decade.
