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The impact of the recession on different sized firms ‐ A view from the micro‐data

Tullio Buccellato and Eric Scheffel
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Tullio Buccellato: Office for National Statistics

Economic & Labour Market Review, 2011, vol. 5, issue 2, 32-44

Abstract: SummaryThis article uses quarterly data on turnover to analyse the performance of small, medium and large firms between 2001 and 2009. The analysis draws on two firm‐level datasets which are the Monthly Inquiry into Distribution and Services Sector (MIDSS) and the Monthly Production Inquiry (MPI). For the services sector, it is found that small firms were hardest hit by the downturn, followed by medium‐sized firms, which in turn have done worse than large firms. For the manufacturing sector the opposite results were reported. The turnover of large firms fell the most, followed by medium‐sized firms, with smaller firms contracting the least. In both the services and production sector, volatility in turnover has increased during the sample period and in the run up to the recession ‐ a reflection of greater price and output fluctuations in the last three years.

Date: 2011
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