Abstract
This paper examines the relationships between profitability and firm size, and efficiency and firm size, based on firms in Upper Austria. There is considerable evidence suggesting that the average profitability of small enterprises exceeds that of large firms. However, productivity tends to be positively related to firm size. These empirical findings present something of a paradox.
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An earlier version was presented at the ICSB 36th World Conference on “Small Business and Partnership”, June 24–26, 1991, Vienna, Austria. The authors gratefully acknowledge the most helpful comments on and suggested improvements of this paper by Professor Robert E. Kuenne (Princeton University) and the participants of the ICSB World Conference.
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Schneider, F., Lenzelbauer, W. An inverse relationship between efficiency and profitability according to size of (Upper-)Austrian firms? Some further tentative results. Small Bus Econ 5, 1–22 (1993). https://doi.org/10.1007/BF01539315
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DOI: https://doi.org/10.1007/BF01539315