The Growth and Decline of Small firmsIn Developing Countries

Empirical work on micro and small firms has focused on developed countries.The little work that exists on developing countries is all too often based on smallsamples taken from ad hoc questionnaires. The census data we analyze are fairlyrepresentative of the structure of small business in India. Consistent with priorresearch on developed countries, size and age have a negative impact on firm growthin the majority of specifications. The decision to export is a double-edged sword –if successful it can accelerate the growth of successful firms, but it can also increasethe probability of decline.