Size effect on survivability of SMEs based on the survival index value (SIV) model

Effect of firm size on survivability of Small and Medium-size Enterprises (SMEs) is of great importance. Researchers have dealt with this issue using diverse analysis methods. The tool we used for such analysis in this work is the Survival Index Value (SIV) model. To our knowledge, this method has never been used before to study the issue of firm size and small firm survivability. We found that higher firm size do not enhance survivability of SMEs with a positive slope of their Survival Progression Indicator (SPI) line, neither it does that for firms with negative slope of the SPI line. However, no evidence was found to support the common understanding that reducing firm size would enhance survivability of firms with negative SPI line. Increasing firm size was found to have positive effect on survival of firms with a slope of the SPI line close to zero. Keywords: Small and Medium-size Enterprise, SMEs, SIV model, Firm Size, Relative Size of Enterprise, Survival Progression Indicator, Survivability