Small Business Redefined: A Quasi-Linear Fuzzy Classification of Firm Size

Bakhtiari, Sasan

doi:10.2139/ssrn.2037596

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Small Business Redefined: A Quasi-Linear Fuzzy Classification of Firm Size

UNSW Australian School of Business Research Paper No. 2012-24

37 Pages Posted: 17 Apr 2012

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Government of the Commonwealth of Australia - Department of Industry, Innovation and Science; Australian National University (ANU) - Crawford School of Public Policy

Date Written: April 4, 2012

Abstract

The quasi-linear fuzzy modeling of Filev (1991) is used to estimate the relationship between the number of managers and employees in a firm. The results form the basis for the classification of firms into small and large businesses. Application to a data of Australian firms shows an evolution episode during which firms are driven by various transitional forces. The composition of the transition region suggests that the 2011 small business tax-break cap set by Australian Taxation Office falls short of fully supporting growth as intended. The implications pave the way for improvement to the business tax code aiming at growth and job creation.

Keywords: fuzzy logic, small business, job creation, business taxation

JEL Classification: C38, C61, D23, H25

Suggested Citation: Suggested Citation

Bakhtiari, Sasan, Small Business Redefined: A Quasi-Linear Fuzzy Classification of Firm Size (April 4, 2012). UNSW Australian School of Business Research Paper No. 2012-24, Available at SSRN: https://ssrn.com/abstract=2037596 or http://dx.doi.org/10.2139/ssrn.2037596