Verification of the typical ratio between both the number of households and business entities (quantum satis) for selected countries

Abstract

There is a G = αX ratio between the number of households (G) and the number of business entities (X), where α equals 5.00 for well-developed countries. The aim of the study was to verify this proportion (called ”quantum satis”) for countries with significant number of population in the period of 2010—2016. It involved countries such as Brazil, Canada, China, India, Poland, Russia and the USA on the basis of data obtained from the statistical offices websites and the OECD. The formulas of the regression function were used in the research. In 2016 such proportion was reached by Russia and China. For the economies of highly developed countries the value of α may be less than 5,00, which is influenced by processes such as outsourcing, entrepreneurship and economic liberalism (such countries include i.a. the USA and Canada).