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Firm growth and barriers to growth among small firms in India

Firm growth and barriers to growth among small firms in India
Firm growth and barriers to growth among small firms in India
Empirical work on micro and small firms focuses on developed countries, while existing work on developing countries is all too often based on small samples taken from ad hoc questionnaires. The census data we analyze here are fairly representative of small business structure in India. Consistent with findings from prior research on developed countries, size and age have a negative impact on firm growth in the majority of specifications. Enterprises managed by women have lower expected growth rates. Proprietary firms face lower growth on the whole, especially if they are young firms. Exporting has a positive effect on firm growth, especially for young firms and for female-owned firms. Although some small firms are able to convert know-how into commercial success, we find that many others are unable to translate it into superior growth.
entrepreneurship, developing countries, micro and small businesses, firm growth, firm age, barriers to growth, declining firms, female entrepreneurs, robust regression, L26, L25
383-400
Coad, Alex
41587208-2a53-4254-8566-fd0c993e6d12
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531
Coad, Alex
41587208-2a53-4254-8566-fd0c993e6d12
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531

Coad, Alex and Tamvada, Jagannadha Pawan (2012) Firm growth and barriers to growth among small firms in India. Small Business Economics, 39 (2), 383-400. (doi:10.1007/s11187-011-9318-7).

Record type: Article

Abstract

Empirical work on micro and small firms focuses on developed countries, while existing work on developing countries is all too often based on small samples taken from ad hoc questionnaires. The census data we analyze here are fairly representative of small business structure in India. Consistent with findings from prior research on developed countries, size and age have a negative impact on firm growth in the majority of specifications. Enterprises managed by women have lower expected growth rates. Proprietary firms face lower growth on the whole, especially if they are young firms. Exporting has a positive effect on firm growth, especially for young firms and for female-owned firms. Although some small firms are able to convert know-how into commercial success, we find that many others are unable to translate it into superior growth.

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More information

Published date: September 2012
Keywords: entrepreneurship, developing countries, micro and small businesses, firm growth, firm age, barriers to growth, declining firms, female entrepreneurs, robust regression, L26, L25
Organisations: Strategy, Innovation & Entrepreneurship

Identifiers

Local EPrints ID: 354330
URI: https://eprints.soton.ac.uk/id/eprint/354330
PURE UUID: 3efb308f-a662-494b-bfcd-3b5195707ef9

Catalogue record

Date deposited: 09 Jul 2013 10:25
Last modified: 18 Jul 2017 03:57

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