ABSTRACT
Small and medium-sized enterprises (SMEs) are independent businesses with limited size, managed by its owner or co-owners and having a small market share. BIS (2014) defines small firms as those with a maximum of 49 employees and medium-sized firms as those with between 50 and 249 employees. According to BIS (2018), small and medium-sized businesses accounted for 99.9% of all enterprises in the UK. SMEs provided 16.3 million jobs, making up 60% of all private sector employment. China’s SMEs comprised nearly 98% of all firms, accounting for 80% of employment and 58% of total GDP (Ecovis, 2017). In America, firms with fewer than 50 employees made up over 99% of all businesses (ASE, 2016). Given the essential role of small firms in modern economies, the study of management practices and employment relationships in small firms is a crucial component in understanding work and organisations.
