This is the first in a series of blogs looking at SMEs and the associated opportunities for regional new job creation and growth. It draws on experience in working with Federal and State agencies, regional bodies, and hundreds of regional SMEs
As a model for discussion, I have created the fictional region of Arcadia, let’s say in NSW. The ABS would likely tell us the following (figures rounded):
• Total number of businesses = 10,000
• Number of employing businesses = 4,250
• Total number of Full Time Equivalent (FTE) employees = 44,000
Further, reading plus some extrapolation would show us Arcadia’s demography by company size and number: (I have extrapolated to split 9-49 FTE into the more workable division of 9-19 and 20-49)
|Item||Non-employing||1-8 FTE||9-19 FTE||20-49||50-199||>200||Total|
Current growth rate of Regional Domestic Product is 1.5% pa
Let’s assume a regional development target is to stimulate the creation of 440 new jobs or an increment on existing growth of 1% in Year 1. At $100k per job, this is an increase in value of $44m
• Who would be in charge?
• What strategies would work best?
• Which SMEs would be targeted?
Good to think about. My next blog will explore further.