The Effect of Initial Size on the Duration of Small and Medium Manufacturing Enterprises (SMEs)

Subject Areas : Business Management

Houshang Taghizadeh ¹ , Ghafar Tari ²

1 - Assistant Professor, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2 - Ph.D. Student, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Received: 2007-08-27 Accepted : 2008-05-15 Published : 2008-05-21

Keywords: Survival, Initial Size, duration, Small and Medium Manufacturing Enterprises,

Abstract :

The aim of this paper is to investigate the effect of initial size on the duration of small and medium manufacturing enterprises in Iran through 1361-1385. The Industry & Mine Ministry database has been used for data gathering and the data are analyzed using TDA software. The Kaplan-Meier Product-Limit estimator has been used for exploratory data analysis and the semi-parametric Cox regression model is used to test the hypotheses. The results of this study support the positive and meaningful relationship between initial size and survival. Furthermoer, in this research the survival functions of small and medium firms were compared and we concluded that survival probability of medium firms (with 10 to 99 employees) is greater than that of  small firms (with lower than 10 employees).

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