Size distribution of firms

Updated: Aug 20, 2021

A description of the size pattern of firms in an industry or economy. It is constructed by choosing some suitable measurement of size (total sales, number employed, net assets, etc.) and then establishing size classes, e.g.:

number employed: less than 10 11 – 20 21 – 50 51 – 100 and so on

Then the number of firms falling within each size class is calculated, and these numbers are tabulated against the size classes. This then gives the size distribution of firms.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.