Firm Size Distribution of Indian Medium, Small and Micro Enterprises

16 Pages Posted: 13 Sep 2012

See all articles by Manaswini Bhalla

Manaswini Bhalla

Indian Institute of Management (IIMB), Bangalore

Arnab Mukherji

Center for Public Policy, IIM Bangalore

Date Written: July 31, 2010

Abstract

This paper analyzes the firm size distribution of Micro, Small and Medium Enterprises (MSME) using a nationally representative survey of unregistered firms in India that were collected as a part of the 3rd MSME Census in 2002. We find that the firm size distribution for younger firms is skewed to the right and the estimated density becomes log normal with age when we measure size using value of gross output. However, when we measure size using employment, the firm size is not log normal. We close with potential hypothesis as to why this may be so.

Keywords: kernel density estimation, MSME, unregistered firms, India

Suggested Citation

Bhalla, Manaswini and Mukherji, Arnab, Firm Size Distribution of Indian Medium, Small and Micro Enterprises (July 31, 2010). IIM Bangalore Research Paper No. 310. Available at SSRN: https://ssrn.com/abstract=2145226 or http://dx.doi.org/10.2139/ssrn.2145226

Manaswini Bhalla (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

Arnab Mukherji

Center for Public Policy, IIM Bangalore ( email )

Bannerghata Road
Bangalore, Karnataka 560076
India

HOME PAGE: http://www342.pair.com/mukherji/arnab

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