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What is the average revenue of an SME in the United States, in the United Kingdom, in Europe and in Asia?
Hello! Thank you for your question about the average revenue of an SME in the United States, in the United Kingdom, in Europe and in Asia. The two sources that were the most useful in researching this question were provided by Forbes and Statistic Times. The short answer is that the average revenue of an SME is $1,024,783 in the United States, $432,532 in the United Kingdom, $178,212 in Europe and $17,046 in Asia. Please see below for an explanation of my research.
METHODOLOGY
In order to begin this research, I started by searching about the average revenue generated by SMEs in the United States, in the United Kingdom, in Europe and in Asia. Since such information was not available publicly, an indirect approach using back of the envelope calculations was required. I started by finding the total number of SMEs for each of the areas in question. Next, I found the total revenue generated by the SME sector in each of these areas. Using this information, the average revenue generated by SMEs in US, UK, Europe and Asia could be calculated.
KEY POINTS
1) US
An article published by the Kaiser Family Foundation stated that there were 7.17 million firms in US in 2015. A market report conducted by Trade Up Fund on the other hand, states that SMEs comprised 99% of the firms in US. Thus, the number of SMEs in US can be calculated as follows:
Total number of firms = 7.17 million
% share of SMEs = 99
Number of SMEs = 7.09 million
Furthermore, the report states that SMEs contribute 50% of the non farm GDP of the US, a figure which is provided by Fed Economic Data as $13.48 trillion. Hence, the total revenue generated by SMEs in US can be calculated as follows
Non farm GDP = $13.48 trillion
% share of SMEs = 50
Total revenue of SMEs = $6.74 trillion
Therefore
Average revenue per SME = Total revenue/number of SME
Average revenue per SME = $950,634
However, the results obtained by this methos are for the year 2015. An article published by Forbes stated that the revenue of SMEs in US grew by 7.8% for the year 2016. Therefore, the average revenue of an SME in 2016 can be calculated as:
Average revenue in 2015 = $950,634
Growth % = 7.8
Average revenue in 2016 = $1,024,783
2) UK
Business statistics provided by the House of Commons Library state that there are 5.41 million SMEs in UK, with a total turnover of 1.82 trillion pounds ($2.34 trillion). Thus, the average revenue can be calculated as follows:
Total revenue of SMEs = $2.34 trillion
Number of SMEs = 5.41 million
Average revenue per SME = Total revenue/number of SME
Average revenue per SME = $432,532
3) Europe
The annual report on SMEs by the European Commission states that there were 23 million SMEs which generated €3.9 trillion ($5.1 trillion) in value in 2015. Hence, once again we can calculate the average revenue per SME as follows
Total revenue of SMEs = $5.1 trillion
Number of SMEs = 23 million
Average revenue per SME = Total revenue/number of SME
Average revenue per SME = $169,565
The article further states that the SME sector exhibited a growth rate of 5.7% for the same time period. Assuming this growth to remain constant for 2016, the average revenue per SMEin 2016 can be calculated as follows:
Average revenue in 2015 = $169,565
Growth % = 5.7
Average revenue in 2016 = $178,212
4) Asia
One of my colleagues Emma in an earlier report stated that there 628 million SMEs in Asia, while statistics provided on Statistic Times establishes the GDP of Asia in 2016 to be $26.48 trillion. Further more, a financial report developed by Asian Development Bank states that SMEs contribute 40% of total GDP in Asia. Hence, the average revenue per SME can be calculated as follows.
Total GDP = $26.48 trillion
% share of SMEs = 40
Total revenue of SMEs = $10.59 trillion
Number of SMEs = 628 million
Average revenue per SME = Total revenue/number of SME
Average revenue per SME = $17,046
CONCLUSIONS
Based on my research, I can conclude by saying that the average revenue of an SME is $1,024,783 in the United States, $432,532 in the United Kingdom, $178,212 in Europe and $17,046 in Asia.
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