Firm size distribution of Indian medium, small and micro enterprises:

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.