Transition Rates
Only a few small firms graduate into larger size brackets each year
The following series of graphs illustrate the transition of enterprises from their initial size in 1995 through to 2000. For example, the first graph shows the transition in size of all firms that employed 0-5 FTEs in 1995, giving the proportion that then fell into each of the six size categories in the years 1996-2000. Five further graphs follow with the same interpretation for firms in each of the other size groups in 1995. Only enterprises still operating in each year are included in the statistics.
Of those employing 0-5 FTEs in 1995, only a small proportion graduated into larger size brackets, with 96 percent of these firms still employing 0-5 FTES in 1996, 95 percent in 1997, 94 percent in 1998 and 1999, and 93 percent in 2000.
Figure 16. Transition Rates - Enterprises with 0-5 FTEs in 1995
Firms with 6-9 FTEs are the least likely to remain the same size
Of all enterprises with 6-9 FTEs in 1995, 65 percent remained in the same size bracket through to 1996, 54 percent in 1997, 49 percent in 1998, 47 percent in 1999 and 44 percent in 2000. Of all size groups, those employing 6-9 FTEs in 1995 were least likely to remain the same size through to 2000, suggesting that this size bracket may be a transitional state for firms. Over the period from 1995 to 2000, 23 percent of firms expanded to employ greater than 9 FTEs and 33 percent contracted to employ between 0 and 5 FTEs.
Figure 17. Transition Rates - Enterprises with 6-9 FTEs in 1995
54% of firms with 10-19 FTEs remained the same size...
By 2000, of firms employing between 10 and 19 FTES in 1995, 54 percent remained the same size, 27 percent contracted and 19 percent expanded.
Figure 18. Transition Rates - Enterprises with 10-19 FTEs in 1995
...65% of firms with 20-49 FTEs....
One percent of enterprises with 20-49 FTEs in 1995 grew to have over 100 FTEs in 2000, while 5 percent shrank to have only 0-5 FTEs. Over the period to 2000, 65 percent remained the same size, while 24 percent contracted and 11 percent expanded.
Figure 19. Transition Rates - Enterprises with 20-49 FTEs in 1995
...51% of firms with 50-99 FTEs...
51 percent of enterprises employing between 50 and 99 FTES in 1995 remained in the same size bracket in 2000, while 30 percent contracted and 20 percent expanded.
Figure 20. Transition Rates - Enterprises with 50-99 FTEs in 1995
...and 62% of firms with 100+ FTEs remained the same size
Of those enterprises that employed greater than 100 FTEs in 1995, 80 percent still employed in more than 100 FTEs enterprises in 2000. Five percent were employed in 0-5 FTEs enterprises, 0 percent in 6-9, 1 percent in 10-19, 3 percent in 20-49, and 11 percent in 50-99 FTEs.
Figure 21. Transition Rates - Enterprises with 100+ FTEs in 1995
The following table gives the proportion of those firms surviving from 19957 to 2000 that expanded, remained the same size, or contracted over the period.
Table 4. Transition of Firms 1995-2000
| Enterprise Size 1995 | % Smaller in 2000 | % Same in 2000 | % Larger in 2000 |
|---|
| 0-5 | - | 93 | 7 |
| 6-9 | 33 | 44 | 23 |
| 10-19 | 27 | 54 | 19 |
| 20-49 | 24 | 65 | 11 |
| 50-99 | 30 | 51 | 20 |
| 100+ | 20 | 81 | - |
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