Are Small Firms Really Less Productive?

By Erol Taymaz. 2005

146 citations recorded by the source corpus.

AbstractSmall and medium-sized establishments (SMEs) account for a large proportion of industrial employment and production in almost all countries. Moreover, the recent literature emphasizes the role SMEs play in nurturing entrepreneurship and generating new products and processes. Although SMEs could be a source of new ideas and innovations, there are substantial productivity differences between small and large establishments. In this paper, we analyze three sources of productivity differentials: technical efficiency, returns to scale, and technical change. Our analysis on the creation, survival, and growth of new establishments in Turkish manufacturing industries in the period 1987–1997 shows that all these three factors play a very important role in determining the survival probability and growth prospects of new establishments.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/284e6b6fc60406ff9892a4cc1154809efbbf4a79

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In Economics and Econometrics

1. Ku‐Hsieh Chen
2. Chih‐hai Yang
3. M. Falk

Citations in the corpus

• Are small firms less efficient? (2009, background): “Taymaz and Saatci (1997) and Taymaz (2005) investigated the effect of subcontracted output (measured as the proportion of outputs subcontracted by other firms) on Turkish firms’ efficiency and found mixed results across industries.”