Patterns in Business Growth
The following table shows the transition of enterprises from their initial EC size group in 2000 through to 2004. Enterprises that experienced an increase or decrease in employees but did not move out of their EC size group were recorded as having no change. The data only include enterprises in continuous existence between 2000 and 2004.
Table 4: Transition of Firms in Continued Existence, 2000-2004
| EC Size Group in 2000 |
Change |
| Smaller in 2004 |
No change in 2004 |
Larger in 2004 |
| 0 |
- |
89.54% |
10.46% |
| 1-5 |
21.60% |
65.69% |
12.71% |
| 6-9 |
29.56% |
42.79% |
27.65% |
| 10-19 |
24.99% |
55.68% |
19.33% |
| 20-49 |
22.37% |
65.90% |
11.73% |
| 50-99 |
22.12% |
60.62% |
17.26% |
| 100-499 |
15.52% |
78.84% |
5.64% |
| 500+ |
10.86% |
89.14% |
- |
Only a few small firms move into larger size brackets each year.
The following series of graphs illustrates transitions of enterprises between size brackets between 2000 and 2004. See Appendix 3 for the transition rates of firms with 20 or more employees.
Few firms with no employees graduated into larger size brackets.
Only a small proportion of enterprises with zero employees in 2000 moved into larger size categories - 92.23 percent still employed no employees in 2002, and 89.54 percent by 2004. By 2004, just over 9 percent were employing 1-5 employees and just over 1 percent had 6-19 employees.
Figure 20: Transition Rates - Enterprises with Zero EC in 2000
→ Long Description of Figure 20: Transition Rates - Enterprises with Zero EC in 2000
Over 65 percent of firms with 1-5 employees remained the same size.
Of those businesses employing 1-5 employees in 2000, 65.69 percent were still in the same size category by 2004. Over the same period, 12.23 percent of these enterprises had increased their employee numbers to between 6 and 19.
Figure 21: Transition Rates - Enterprises with 1-5 EC in 2000
→ Long Description of Figure 21: Transition Rates - Enterprises with 1-5 EC in 2000
Firms with 6-9 employees are the least likely to remain the same size.
Of all enterprises with 6-9 employees in 2000, 42.79 percent remained in the same size bracket in 2004. Of all size groups, those employing 6-9 employees in 2000 were least likely to remain the same size until 2004. From 2000 to 2004, 27.65 percent of firms expanded to employ more than 9 employees, and 29.56 percent contracted to employ between 0 and 5 employees.
Figure 22: Transition Rates - Enterprises with 6-9 EC in 2000
→ Long Description of Figure 22: Transition Rates - Enterprises with 6-9 EC in 2000
Just over half of firms with 10-19 employees remained the same size.
By 2004, of firms employing between 10 and 19 employees in 2000, 55.68 percent remained the same size, 24.99 percent contracted and 19.33 percent expanded.
Figure 23: Transition Rates - Enterprises with 10-19 EC in 2000
→ Long Description of Figure 23: Transition Rates - Enterprises with 10-19 EC in 2000
Back to Top