Business Growth, Size and Age: Evidence from the Business Longitudinal Survey (BLS) Data in Australia

Mita Bhattacharya

Australian Economic Papers, 2014, vol. 53, issue 3-4, 129-138

Abstract: type="main">

Despite the important role small and medium-sized enterprises (SMEs) play in the Australian economy, little is known from empirical literature on the formation, growth and frequent dissolution of these businesses. Considering the dynamics of business behaviour, this article analyses the performance, business formation (or dissolution) and variability of growth. Using only available Business Longitudinal Survey (BLS) data from the Australian Bureau of Statistics (ABS), manufacturing businesses are considered for the analysis. Firm growth, the variability of firm growth and the probability that a firm will fail (or survive) depend on firm age. Incorporating the age for Australian businesses, we are able to explain the importance of maturity in analysing growth and survival process of SMEs.

Date: 2014
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