The Size—Age—Growth Relationship in Not-for-Profit Tourist Attractions: Evidence from UK Museums

Abstract

The size–age–growth relationship in private-sector firms has been very widely studied. This paper examines the same relationship in not-for-profit tourist attractions, focusing attention on UK museums. The current scale and structure of the UK museums sector, including the extent of entry and exit, are described. The author then briefly discusses the nature of the size–age–growth relationship in the for-profit sector, and assesses the relevance of this relationship for museums. He then presents empirical findings for UK museums. The evidence suggests that, outside the government sector, both the mean growth and the standard deviation of growth tend to decline with size, a finding consistent with evidence for the for-profit sector. No significant effect of age was detected. Finally, there is evidence – again, outside the government sector – that the net impact of charging is negative. The closing section of the paper concludes the study and suggests avenues for further work.