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Title:The growth and decline of small firms in developing countries PDF Logo
Authors:Coad, Alex
Tamvada, Jagannadha Pawan
Issue Date:2008
Series/Report no.:Papers on economics and evolution 0808
Abstract:Empirical work on micro and small firms has focused on developed countries. The little work that exists on developing countries is all too often based on small samples taken from ad hoc questionnaires. The census data we analyze are fairly representative of the structure of small business in India. Consistent with prior research on developed countries, size and age have a negative impact on firm growth in the majority of specifications. The decision to export is a double-edged sword if successful it can accelerate the growth of successful firms, but it can also increase the probability of decline. While proprietary ownership results in faster growth, enterprises managed by women are less likely to grow and more likely to decline. Although many small firms are able to convert knowhow into commercial success, we find that many others do not have any technical knowledge and some are unable to use it to their benefit.
Subjects:Entrepreneurship
Developing countries
Micro and Small businesses
Firm growth
Firm age
Barriers to growth
Declining firms
Female entrepreneurs
JEL:L25
L26
O12
Document Type:Working Paper
Appears in Collections:Papers on Economics and Evolution, MPI für Ökonomik

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