Small vs. Young Firms across the World : Contribution to Employment, Job Creation, and Growth

This paper describes a unique cross-country database that presents consistent and comparable information on the contribution of the small and medium enterprises sector to total employment, job creation, and growth in 99 countries. The authors compare and contrast the importance of small and medium enterprises to that of young firms across different economies. They find that small firms (in particular, firms with less than 100 employees) and mature firms (in particular, firms older than 10 years) have the largest shares of total employment and job creation. Small firms and young firms have higher job creation rates than large and mature firms. However, large firms and young firms have higher productivity growth. This suggests that while small firms employ a large share of workers and create most jobs in developing economies their contribution to productivity growth is not as high as that of large firms.

Bibliographic Details

Main Authors:	Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2011-04-01
Subjects:	ADVERSE CONSEQUENCES, AGE GROUPS, AGGREGATE EMPLOYMENT, BUSINESS CLIMATE, BUSINESS ENVIRONMENT, CAPITAL MARKETS, COMPANY, CONGLOMERATE, CORPORATION, COUNTRY DUMMIES, CREATING JOBS, CREATION OF JOBS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, ECONOMIC GROWTH, ECONOMIC RECOVERY, ECONOMICS, EMPLOYMENT, EMPLOYMENT GENERATION, EMPLOYMENT GROWTH, EMPLOYMENT GROWTH RATES, EMPLOYMENT LEVELS, EMPLOYMENT SHARE, ENTREPRENEURSHIP, EXTERNAL FINANCE, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL STATEMENTS, FIRM GROWTH, FIRM LEVEL, FIRM SIZE, FIRMS, FREE PRESS, GROWTH RATE, INCOME, INCOME GROUP, INCOME GROUPS, INFORMAL ECONOMY, INFORMAL SECTOR, INNOVATION, INSTITUTIONAL CONSTRAINTS, INVESTMENT CLIMATE, JOB CREATION, JOB CREATION RATES, JOB DESTRUCTION, JOB GAIN, JOB GAINS, JOB GENERATION, JOBS, JUDICIAL SYSTEMS, LABOR FORCE, LABOR MARKET, LABOR PRODUCTIVITY, LEGAL CONSTRAINTS, LEGAL ENFORCEMENT, LICENSING, MANUFACTURING INDUSTRIES, MARKET STANDARDS, MEDIUM ENTERPRISES, MERGERS, MINIMUM WAGES, NET EMPLOYMENT, NET JOB CREATION, NET JOB LOSS, NET JOB LOSSES, OUTPUT, POLITICAL ECONOMY, PORTFOLIOS, PRIMARY OBJECTIVE, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR GROWTH, PRODUCTIVITY GROWTH, PRODUCTIVITY REGRESSIONS, PROPERTY RIGHTS, REINVESTMENT, SAFETY, SAFETY STANDARDS, SALES GROWTH, SMALL BUSINESS, SMALL BUSINESSES, SMALL FIRM, SMALL FIRMS, SME, SME SECTOR, SME STATISTICS, STARTUPS, TAX, TOTAL EMPLOYMENT, TURNOVER, VENTURE CAPITAL, WORKERS, WORKING HOURS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110411130747 http://hdl.handle.net/10986/3397
Tags:	Add Tag No Tags, Be the first to tag this record!