High-Growth Firms: Not So Vital After All?
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2016Access:
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Sven-Olov Daunfeldt, Daniel Halvarsson, Oana Mihaescu, 'High-Growth Firms: Not So Vital After All?', Senate Hall, 2016, International Review of Entrepreneurship, 377-394Download Item:
Abstract:
High-growth firms have received considerable interest recently since they create most of the new jobs in the economy. The purpose of our paper is to investigate the characteristics of high-growth firms prior to their growth period, and whether these characteristics differ across industries. Using data on a large sample of limited liability firms in Sweden for the period 2007-2010, we find that high-growth firms do not have the characteristics that we typically associate with successful firms. On the contrary, our results indicate that high-growth firms initially have low profits and a weak financial position. This might explain why studies have found that so few high-growth firms are capable of sustaining their high growth rates in subsequent periods, and thus question policies that are targeted towards these companies.
Keywords: entrepreneurship, firm growth, gazelles, high-growth firms, high-impact firms, innovation
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International Review of EntrepreneurshipAvailability:
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2009-2822Metadata
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