Small Business Redefined: A Quasi-Linear Fuzzy Classification of Firm Size

37 Pages Posted: 17 Apr 2012

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Date Written: April 4, 2012


The quasi-linear fuzzy modeling of Filev (1991) is used to estimate the relationship between the number of managers and employees in a firm. The results form the basis for the classification of firms into small and large businesses. Application to a data of Australian firms shows an evolution episode during which firms are driven by various transitional forces. The composition of the transition region suggests that the 2011 small business tax-break cap set by Australian Taxation Office falls short of fully supporting growth as intended. The implications pave the way for improvement to the business tax code aiming at growth and job creation.

Keywords: fuzzy logic, small business, job creation, business taxation

JEL Classification: C38, C61, D23, H25

Suggested Citation

Bakhtiari, Sasan, Small Business Redefined: A Quasi-Linear Fuzzy Classification of Firm Size (April 4, 2012). UNSW Australian School of Business Research Paper No. 2012-24. Available at SSRN: or

Sasan Bakhtiari (Contact Author)

Australian Department of Industry ( email )

341 George Street
Sydney, NSW 2000


Crawford School, ANU ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200


Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics