Eszterházy Károly College Faculty of Natural Sciences
In order to reflect their importance in the economy, and to determine their significance, 20. and 21. table can serve as the official statistical data. In Hungary and in the EU, the active companies can be compared by their role in employment, number of employees, their added value and several different factors.
In the European Union’s 25 Member States, companies who are not belongs to non-financial sector, their situation is shown by the 20. Figure which is an indicator of the size categories by percentage distribution.
Figure 20. The characteristic data of SME’s by size(%), in the EU, Source: Enterprises by size class-overview of SMEsinthe EU, Eurostat, Statisticsinfocus 31/2008
19.6 million companies of the European Union, have 126.7 million employees. 99.8% of all companies operating in the European Union, are small and medium sized companies ( just like in recent years, and in Hungary), this observation is reflected in Figure 21, which is a summary of Hungarian rates. This means that within the European Union, the operating companies (except 4000) belongs to the small and medium sized companies category.
Figure 20 clearly shows that the micro-companies represent the highest rate in the SMEs by 91.8% of all companies, but this rate is not relevant in case of other indicators. Statistics show that 67.1 % of employess, so more than two-third of it are from companies with fewer employees than 250. Only 10% the essential difference between companies with above or below 250 employees, despite the greater difference in other rations. Collectively small and medium sized companies give nearly 60% of all added value. The data of the tables are not included the sectoral breakdown of information of companies:
Sectors which are dominated by micro companies with a maximum of 9 employees, Eg: retail, tourism, financial intermediary activities and other services.
Small companies with 10-49 employees have higher participation rates in the publishing, and recorded programs from the reproductions, wholesale trade, and the garment industry, leather and wood products manufacturing.
Medium sized companies with 50-249 employees mainly dominating the food processing industry, the textile industry, the computer industry, the plastics industry, transport, and machinery and equipment manufacturing.
Half of European Union business without employees, and 41% micro companies with 1-9 employees. An average-sized EU companies, have six employees. In the European Union each year, about two million - a 10 to 12 percent of the registered population –new business are started. The situation of Hungarian companies, shown by significant indicators per cent according to size category, based on data from 2007:
Figure 21. Characteristics of Hungarian SMEs by size (Source: Development strategy of small and medium sized companies 2007-2013, NFGM, Annual Interim Monitoring Report 2008)
In Hungary 99.9% of all businesses, are in the class of micro, small and medium sized companies, this figure illustrates their significant role in the economy. Small and medium sized companies represent a higher proportion, than companies with more than 250 employees, at the view of turnover and value added. The SME typically produce for the domestic market, as evidenced by a little more than one-third proportion of exports.
In Hungary, most businesses work in real estate marketing, real estate leasing, sectors including IT and economic, supporting business services. This is followed by commercial companies, and the manufacturing and construction industries.
Small and medium sized companieshave great importance in our country because of their role in employment, this is confirmed by the data, that within the business sector the SMEs emloying more than two-thirds of employment(69.9%), according to the 2007 year-end data. Within the corporate sector, more than two-thirds of employment is given by small and medium-sized companies. The small and medium-sized company sector is the only important part of the Hungarian economy, which in the past fifteen years was able to produce a significant expansion in employment. Small and medium-sized companies have regionally more balanced employment structure than the large ones. The impact on the rate of employment at both Budapest-country and inter-regional differences in rural gap, is smaller than the large companies.
Micro and small enterprises are typically owned by Hungarian individuals, medium sized companies owned by domestic companies, enterprises have foreign owners. The average share of large enterprises in the business sector in the total capital of about 45 to 51 percent, medium-sized have 17-19 percent and micro-and small enterprises from 32 to 36 percent. The capital concentration is high, but not rising.