It is sometimes assumed that in industrialized countries large firms constitute the main drivers of economic activity. However, in a sample of developed countries drawn from the World Bank database, SMEs accounted for about three-quarters of GDP and just over 60 per cent of employment.
Of course, in a way, this facilitates the financing of gross fiscal deficit of the Central Government and hence enables the Central Government to make more investments. However, this limits the direct investment of these institutions in the infrastructure sector.