Enterprise regularities are probably universal

Do the regularities in enterprise dynamics observed for South African towns and municipalities also occur elsewhere? The U.S. Census Bureau has publicly available data records that allow a quick examination of this question. The data records of counties in the USA, entities for which a range of different measures are available, were downloaded. These included the number of establishments and the number of employees per establishment. The first ten counties of the first State in the data record, i.e. Alabama, were used for a quick comparison.I calculated what we call the enterprise richness (= number of different enterprise types) from the 5-level identifier of establishment types of the counties in the data set and also obtained estimates of the 2014 population size of each county from Wikipedia.

The regularities observed for South African towns were in all respects also present in the Alabama data. A couple of graphs below illustrate this. Enterprise richness is statistically significantly related through a power law (log-log relationship) to the total number of establishments. The number of establishments and the number of employees in the counties are statistically significantly linearly related to the population sizes of the counties.

Establishment vs RichnessPopulation - establishments

We can conclude from these observations that enterprise development and dynamics in South Africa, a developing nation, is in nature not different to that of a developed country such as the U.S. Enterprise development is a predictable entity.

One thought on “Enterprise regularities are probably universal

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s