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Evolution of Small and Medium Enterprises in Lithuania Over the Period 2004–2024

Author

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  • Swapnil Singh

    (Bank of Lithuania)

Abstract

This article analyzes Small and Medium Enterprise (SMEs) employment dynamics in Lithuania from 2004 to 2024, with particular attention to spatial patterns at the municipality level. I document employment polarization within the TDS enterprise panel: while total sample employment grew, SMEs employment share declined by approximately ten percentage points, driven primarily by contraction in medium-sized enterprises. Meanwhile, micro firm-year counts expanded rapidly while average employment per micro firm declined sharply, a pattern consistent with very small-scale activity, formalization, self-employment, or tax/legal-form sorting. Geographic analysis reveals stark regional divergences.

Suggested Citation

  • Swapnil Singh, 2026. "Evolution of Small and Medium Enterprises in Lithuania Over the Period 2004–2024," Bank of Lithuania Occasional Paper Series 62, Bank of Lithuania.
    • Handle: RePEc:lie:opaper:62
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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