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The Size and Growth of UK Manufacturing and Service Firms

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  • J. O. S. Wilson
  • J. E. MORRIS

Abstract

This paper investigates the relationship between firm size and growth for UK manufacturing and services over the period 1991 to 1995. We test for size effects on growth, using models which incorporate the influences of previous growth and industry membership. The results from the analysis suggest that for both manufacturing and services, small firms tend to grow faster than larger firms. The growth of manufacturing firms appears to persist over time, whereas this is not the case for service firms. Small firms tend to have more variable growth rates than their larger counterparts in manufacturing and services. This suggests that large firms may enjoy advantages associated with diversified operations which make them less susceptible to periods of extremely high or low growth.

Suggested Citation

  • J. O. S. Wilson & J. E. MORRIS, 2000. "The Size and Growth of UK Manufacturing and Service Firms," The Service Industries Journal, Taylor & Francis Journals, vol. 20(2), pages 25-38, April.
    • Handle: RePEc:taf:servic:v:20:y:2000:i:2:p:25-38
    DOI: 10.1080/02642060000000018
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    Cited by:

    1. Jan Bentzen & Erik Madsen & Valdemar Smith, 2006. "The growth opportunities for SMC?," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 7(3), pages 139-145.
    2. Jan Bentzen & Erik Madsen & Valdemar Smith, 2012. "Do firms’ growth rates depend on firm size?," Small Business Economics, Springer, vol. 39(4), pages 937-947, November.
    3. Daunfeldt, Sven-Olov & Elert, Niklas & Lang, Ã…sa, 2012. "Does Gibrat's law hold for retailing? Evidence from Sweden," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 464-469.
    4. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    5. Nuri Yildirim, 2015. "Not Leverage but Change in Leverage Matters for Firms' Future Growth: Evidence from Turkey's Top 1000," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 503-525, September.
    6. Nadia Di Paola, 2021. "Pathways to academic entrepreneurship: the determinants of female scholars’ entrepreneurial intentions," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1417-1441, October.
    7. Sian Owen, 2001. "Failures in B2C Companies; Two Examples and Lessons for New Players," Working Paper Series 113, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    8. Hasan Ayaydin & Pinar Hayaloglu, 2014. "The Effect of Corruption on Firm Growth: Evidence from Firms in Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(5), pages 607-624, May.

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