The size–growth relationship in the social services sector in Austria

Reitzinger, Stephanie and Pennerstorfer, Astrid ORCID: (2021) The size–growth relationship in the social services sector in Austria. Service Business. ISSN 1862-8508

Available under License Creative Commons: Attribution 4.0 International (CC BY 4.0).

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The social services sector is among the fastest-growing industries, but it has gained little attention in the debate regarding frm growth. This article analyzes frm growth in relation to frm size using payroll expenses as our indicator for both frm growth and frm size. We apply structural equation modeling and full maximum likelihood estimation using Austrian data comprising all non-proft social service providers. After 2013, fewer frms have been entering and more have been exiting the sector; however, we fnd that growing in size is still not associated with higher growth rates. Our study emphasizes the role of small organizations in remaining a growth sector.

Item Type: Article
Additional Information: Open access funding provided by Vienna University of Economics and Business (WU).
Keywords: Firm size, Firm growth, Gibrat's law, Social services, Economic crisis, Austria
Divisions: Departments > Sozioökonomie > Sozialpolitik
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 31 May 2021 13:51
Last Modified: 31 May 2021 13:51
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