The Number and the Size Distribution of Firms in Sweden and Other European Countries

This study investigates changes in the number and the size distribution of firms in Sweden in the period 1968-1993. The number and the size distribution of Swedish firms are compared to the number and the size distribution of firms in eleven European countries. A decrease in the number of enterprises in the Swedish manufacturing industry is observed in all size classes and intermediate-sized (10-199 employees/firm) firms declined the most. Large differences are found in the number of firms between countries. Data indicate that Sweden has fewer small (10-99 employees/firm) and more large-sized (500+ employees/firm) firms than other European countries. However, we find no support for the standard claim that Sweden has fewer medium-sized (100-499 employees/firm) firms than other European countries.