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Abstract

The primary goal of the study is to determine if small- and medium-sized company (SMEs) employment influences totalemployability. The sample for this study is developed countries like China, the United States, the United Kingdom, France, and RussiaWe have used panel data models in this study. The time period for this study is from 2005 till 2021. When dealing with panel datasets, one of the modern econometric approaches employed in this work is panel data regression modelling. The fixed effects model(FE) and the random effects model (RE) are the two primary panel data models that will be explored. Additionally, we have triedadditional Fixed effect model approaches to assess the results' robustness. This is a quantitative study using positivism philosophyand deductive approach. We have used mono method for this study as data is collected from previously observed observations. Inmost of our test we have seen that SME service sector employment have significant effect on total employability while SME industrysector does not have significant effect on total employability. This is mainly due to the reason that in seventeen years underconsideration industrial growth has somewhat hampered and service industry has seen boom. This study is crucial for addressingtargeted structural policies that help SMEs take advantage of new opportunities in a globalised, digital economy, with implications foremployment, investment, and growth.