I INTRODUCTION

II BUSINESS SIZE AND IMPACTS ON THE ECONOMY

1.1 What is SMES ?

The UK government definition of SMEs encompasses micro (less than 10 employees and an
annual turnover under €2 million), small (less than 50 employees and an annual turnover under
€10 million) and medium-sized (less than 250 employees and an annual turnover under €50
million) businesses.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/961722/SME-Action-Plan.pdf
In the U.S., the Small Business Administration (SBA) classifies small businesses according to its
ownership structure, number of employees, earnings and industry.1 For example, in
manufacturing, an SME is a firm with 500 or fewer employees. In contrast, businesses that mine
copper ore and nickel ore can have up to 1,500 employees and still be identified as an SME. Like
the EU, the U.S. distinctly classifies companies with fewer than 10 employees as a small
office/home office (SOHO).

When it comes to tax reporting, the Internal Revenue Service (IRS) does not categorize
businesses into SMEs. Instead, it separates small businesses and self-employed individuals into
one group and large to mid-size businesses into another.23 The IRS classifies small businesses
as companies with assets of $10 million or less and large businesses as those with over $10
million in assets.

https://www.investopedia.com/terms/s/smallandmidsizeenterprises.asp

According to Decree 80/2021 in Vietnam, SMEs are understood as:

Small enterprises in the fields of agriculture, forestry, fisheries, industry and construction
employing employees with an average annual social insurance contribution of no more than 100
people and a total annual turnover of not more than 50 billion VND or the total capital of the
year does not exceed 20 billion VND
Small enterprises in the field of commerce and services employing employees with an average
annual social insurance contribution of no more than 50 people and a total annual turnover of not
more than VND 100 billion or a year's total capital not exceeding VND 50 billion. copper .
Medium-sized enterprises in the fields of agriculture, forestry, fishery, industry and construction
employing employees with an average annual social insurance contribution of no more than 200
people and a total annual turnover of not more than 200 billion VND. VND or the capital source
of the year is not more than 100 billion VND
Medium-sized enterprises in the field of commerce and services employing employees with an
annual average of no more than 100 people participating in social insurance and a total annual
turnover of not more than VND 300 billion or a year's total capital of no more than VND 100
billion

https://datafiles.chinhphu.vn/cpp/files/vbpq/2021/08/80.signed_01.pdf

1. 2 Impact of small and medium enterprises on the economy

The development of small and medium enterprises will create jobs for workers, thereby
reducing unemployment significantly.
In 2016 SMEs accounted for 96% of all companies employing 47% of the workforce. Based
on national labor force survey estimates, informal workers account for 57.2% of total (non-
farm) employment. .Top 1% companies employ more than half of the total number of
employees in Vietnam (51%), while the top 10% create 83% of all jobs Small and medium
enterprises in our country fully present in the following fields: exporting enterprises account for
8% of the total number of registered companies but employ 47% of the national workforce. In
industry, export companies employ 86 % total Labor .
⇨ Thereby, it can be seen that small and medium enterprises have a very important role in
creating the majority of jobs in Vietnam to meet the working needs of the people,
contributing to income generation and improving life expectancy for people

The development of small and medium enterprises leads to the development of Vietnam's
economy
Every year, SMEs contribute about 40% of GDP, pay 30% to the state budget, contribute 33%
of industrial output value, 30% of export value and attract nearly 60% of employees.
According to the results of the 2021 Economic Census, enterprises increased in both number and
number of employees in the period 2016-2019 and tend to slow down in 2020 due to the impact
of the Covid-19 epidemic. The growth rate of the number of enterprises is faster than the growth
rate of the number of employees, leading to a tendency to gradually decrease the size of
enterprises by employee.
As of December 31, 2020, the whole country had 684.3 thousand enterprises operating with
production and business results. Compared to the same period in 2019, the number of businesses
increased by 2.4%, which is the lowest growth rate in the whole period 2016-2020.
If in the 2016-2019 period alone, the average growth rate of enterprises per year is 9.8%/year,
higher than the average growth rate of 8.1%/year in the 2011-2015 period).
In the period 2016-2020, the labor growth rate is always lower than the number of enterprises,
showing that the number of small and micro enterprises increased faster than the number of
medium and large enterprises, leading to the average labor size. enterprises are decreasing, from
27.7 employees in 2016 to 21.5 employees in 2020.

https://thoibaotaichinhvietnam.vn/doanh-nghiep-viet-nam-da-u-a-n-tang-truo-ng-qua-ke-t-
qua-to-ng-die-u-tra-kinh-te-nam-2021-109675.html
III Enhancing intrapreneurship in both public and corporate organization

1. The importance of intrapreneurship

Intrapreneurship is considered an important element in organizational and economic
development, as it provides a potential means for revitalizing established companies. There is a
growing consensus that established companies need to nurture entrepreneurship throughout
their operations to compete successfully in changing environments. Many authors have
considered corporate entrepreneurship as a method to offer an organization a strategic option
to refine its business concept, meet changing customer needs and expectations, and enhance
its competitive position.
Intrapreneurial behavior is found to be a significant factor in organizational effectiveness
especially when higher levels of economic uncertainty require more innovative, flexible, and
entrepreneurial management practices.
(JETIR)
Intrapreneurship is important for the economic development of an organization as:
- Growth: During the economic downturn most companies stopped investing in the
future.  Now they are sitting on piles of cash.  They know they need to grow, they just
aren’t sure how.  Intrapreneurship answers the question of – HOW! The goal of
Intrapreneurship is to create the entrepreneurial mindset and infrastructure needed to
support growth. It takes a systems view of growth. It is a framework for transformation.
Intrapreneurship helps organizations generate new business growth.
- Innovation: Innovation is the key element in providing aggressive top-line growth. But
doing one or two innovation initiatives a year will not support or sustain innovation.
Organizations need to be innovating all the time. Failure rates for innovation are still
high, 50% to 90%. Innovation alone is not enough.  Organizations need to set the
context for innovation; the right people, the right processes, and the right environment. 
Innovation and intrapreneurship are entwined, they are tied together. You need both to
be successful. Intrapreneurship provides an environment to support and sustain
innovation over time.
- Leadership: Research has identified leadership as the key predictor of innovation
success. Yet a majority of CEOs do not feel like they have the capabilities inside their
organizations to achieve their growth agenda.  The skills and capabilities that propelled
most executives to the top in the past are not the skills required to build new growth
businesses. Only 4% of leaders are intrapreneurial. Intrapreneurship requires a new set
of competencies and behaviors.  Intrapreneurial leaders think and act differently, they
have different motivations and aspirations, and they prefer working in different work
environments.  It is this differentiation that makes them the perfect candidate to lead
new growth initiatives. Intrapreneurship is one of the best ways to attract and retain
your most entrepreneurial leaders.
- Change: Change is one of the least understood and underdeveloped management
disciplines.  Most studies report a 60% – 70% failure rate when it comes to change
initiatives. Risk-averse cultures and resistance to change impede an organization’s ability
to grow. Intrapreneurial leaders are change agents.  They blaze new trails. They become
the very change they wish to see.  Not just driving change, but modeling change so
others can change as well. Intrapreneurship enables organizations to
effectively accelerate and manage change.
- Engagement: Gallup Research estimates that disengaged employees cost US
organizations over $450 billion in lost productivity.  In 2012, only 30% of American
workers were engaged and committed to their workplace. Lost productivity translates to
slow or no growth. Intrapreneurship provides a platform to engage employees in work
that is challenging and meaningful.  Intrapreneurs are highly engaged in their work. 
Their passion and determination inspire others to get involved and try new things.  As
they grow, the organization grows. Intrapreneurship helps employees stretch and grow
while keeping them engaged. Intrapreneurship has become a critical imperative for all
organizations and a survival strategy for others. Organizations that have embraced
Intrapreneurship have achieved higher financial returns, increased productivity, more
innovation, and higher levels of employee engagement. Isn’t it time you took a closer
look at Intrapreneurship and what it can mean for your organization
(Foley)

1. The differences as well as similarities between public and corporate intrapreneurship

The difference
Public Corporate

Objective An individual who is motivated by Requires freedom and flexibility to

power and achievement; undertakes pursue projects without being
purposeful activity to initiate, bogged down in bureaucracy; goal
maintain or aggrandize one or more orientated; motivated but is
public sector organizations; not influenced by the corporate
constrained by profit characteristics

Focus Aim to create value for citizens by Focus on innovative activities and
bringing together unique orientations such as the
combinations of public and/ or development of new products,
private resources to exploit social services, technologies,
opportunities; learns to use external administrative techniques,
forces to initiate and achieve internal strategies, and competitive
change postures; Concentrate on the
internal and external environment

Innovation Public managers are entrepreneurial A system that enables and

in the way they take risks with an encourages individuals to use
opportunistic bias toward action and creative processes that enable them
consciously overcome bureaucratic to apply and invent technologies
and political obstacles their that can be planned, deliberate, and
innovations face purposeful in terms of the level of
innovative activity desired;
instigation of renewal and
innovation within that organization
 Opportunity Uses every opportunity to distinguish Pursues opportunities independent
their public enterprise and leadership of the resources they currently
style from what is the norm in the control; doing new things and
public sector; understand the departing from the customary to
business as well as support the pursue opportunities
opportunity for business growth and
development

The similarities
- The intrapreneurship is the person responsible for creating, improving, and changing
the existing production and service processes of the enterprise. They need to come up
with the courses and culture to take the business forward.
- They will use the resources of that business.
- If there is any risk, the company is responsible for it.
IV
V Reference

Importance of intrapreneurship - JETIR (no date). Available at:

https://www.jetir.org/papers/JETIR1901A44.pdf (Accessed: December 4, 2022).

Foley, S. et al. (2016) 5 reasons why intrapreneurship is important, Corporate Entrepreneurs.

Available at: https://corporate-entrepreneurs.com/2013/11/08/5-reasons-why-
intrapreneurship-is-important/?fbclid=IwAR2R5-
FZp9BSujkDN54s_jbrM_oe7MF23kORjfY8Vrk7LmWGiX0ieHWXVV4 (Accessed: December
16, 2022).
 Mle

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