Firm Size Distribution and the Effects of Ownership Type
Marek Csabay, Beata Stehlikova
Keywords:
business structure, size distribution, competitiveness, industrial organization, Slovakia
Abstract:
Size distribution is generally accepted as an important characteristic of business structure, one
which impacts on competitiveness, with firm size often regarded as the key determinant of entrepreneurial
innovativeness. This article describes the size distribution of enterprises taken from
a statistical set of Slovak business entities with a special focus on the relation between size and
ownership of the businesses. A change in the probability firm size distribution is an undisputable
indicator of a change in the business structure. This article seeks to create an eventual starting
point for better policymaking in Slovakia, a country which bases its competitiveness primarily
on large and medium-sized foreign investments. The authors’ main objective is to determine
the size distribution type of the firms. The Anderson-Darling and Kolmogorov-Smirnov tests
were used to determine if the dataset has been taken from a population with a specific distribution.
Among the main results with regard to Slovak business structure, a statistically significant
dependence was shown between the ownership type and the size type of SMEs. The authors
confirmed the Pareto, Power and Generalized Gamma distributions as appropriate probability
distributions of firm sizes. The probability distribution of SMEs in general as well as according
to individual ownership type shows a Lévy distribution. The authors used the environment of
the R programming language along with the software EasyFit.
Fulltext download:
 Firm Size Distribution and the Effects of Ownership Type [PDF file] [Filesize: 1.13 MB]
 10.7441/joc.2020.04.02
Csabay, M., & Stehlikova, B. (2020). Firm Size Distribution and the Effects of Ownership Type. Journal
of Competitiveness, 12(4), 22–38. https://doi.org/10.7441/joc.2020.04.02
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