OECD research suggests that dynamic firm turnover depends strongly on product market reforms that raise competitive pressures, labour market reforms that allow firms to adjust more easily to changing market conditions, and the efficiency of the legal framework in areas such  7  De Kok, J. et al (2011), "Do SMEs create more and better jobs", EIM Business & Policy Research report, November 2011.
The industry also enjoys low exposure to bad debts, with the non-performing loans ratio at a mere 1.6 percent as of end-July this year. The industry likewise exhibits robust lending activity, with credit helping boost not only household consumption but also business activities, such as real estate, trade, manufacturing, and construction, among other sectors.