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 wit...

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Bibliographic Details
Published in:Small business economics 2012-09, Vol.39 (2), p.383-400
Main Authors: Coad, Alex, Tamvada, Jaganaddha Pawan
Format: Article
Language:English
Subjects:
Age
Age distribution
Business and Management
Business growth
Business structures
Developing countries
Economic growth rate
Economic models
Economic theory
Entrepreneurs
Entrepreneurship
Industrial economics
Industrial Organization
Industrialized nations
LDCs
Management
Manufacturing
Microeconomics
Organizational structure
Productivity
Self employment
Small & medium sized enterprises-SME
Small business
Small businesses
Studies
Women owned businesses
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Summary: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.
ISSN:0921-898X
1573-0913
DOI:10.1007/s11187-011-9318-7