Drivers And Barriers Of High Growth Firms

Master's Thesis from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, University of Leipzig (Lehrstuhl für Innovationsmanagement und Innovationsökonomik), language: English, abstract: High-Growth Firms (HGFs) haben in den letzten Jahren großes Interesse durch die wirtschaftswissenschaftliche Forschung erfahren. HGFs bezeichnen dabei Unternehmen, die in mindestens drei aufeinanderfolgenden Jahren mindestens 20% Umsatzwachstum aufweisen können. Das Phänomen des schnellen Wachstums ist dabei auch aus Unternehmenssicht von großem Interesse. Beispielsweise haben solche Unternehmen einen vereinfachten Zugang zu Finanzierungsquellen und potentiellen Mitarbeitern. Dennoch wurde die unternehmerische Perspektive auf HGFs weitestgehend vernachlässigt. Die Literatur gibt bisher kaum Antworten darauf, welche Faktoren schnelles Wachstum treiben oder hemmen und mit welchen Praktiken schnell-wachsende Unternehmen diese Faktoren nutzen oder überkommen. Dabei fehlte es bisher insbesondere an Erhebungen, die sich der spezifischen Gruppe kleiner und mittelgroßer Technologieunternehmen in Deutschland widmet. Die Masterarbeit widmet sich daher der Frage, welche Faktoren schnelles Unternehmenswachstum treiben oder bremsen. Die Arbeit wendet eine Kombination aus induktiver und deduktiver Herangehensweise an. Dazu leitet die Arbeit zunächst deduktiv Treiber und Hemmnisse aus einer umfangreichen Literaturanalyse von 120 wissenschaftlichen Artikeln und Büchern ab. Um neuartige Erkenntnisse für die Gruppe deutscher Technologieunternehmen zu erheben, wurden Interviews mit Gründern und CEOs von 21 schnell wachsenden Unternehmen durchgeführt und mittels Software-gestützter Inhaltsanalyse ausgewertet. Die Arbeit trägt in mehrfacher Hinsicht zur bestehenden Forschung bei. Erstens generiert sie eine umfassende Klassifizierung der bestehenden Literatur hinsichtlich der Faktoren und Praktiken schnellen Unternehmenswachstums. Zweitens, generiert die Arbeit generiert aufschlussreiche empirische Daten und entwickelt ein Wachstumsmodell für schnell-wachsende Technologieunternehmen. Weiterhin ordnet sie den identifizierten Wachstumsphasen die entsprechenden Treiber, Hemmnisse und Unternehmenspraktiken zu. Zuletzt generiert die Arbeit ein Set an Propositionen zur weiteren Untersuchung und entwickelt ein Instrument, welches es Managern erlaubt, das Wachstumspotential ihres Unternehmens zu planen und mit konkreten Maßnahmen zu planen.

Remarkably, a small fraction of firms account for most of the job and output creation in high-income and developing countries alike. Does this imply that the path to enabling more economic dynamism lies in selectively targeting high-potential firms? Or would pursuing broad-based reforms that minimize distortions be more effective? Inspired by these questions, this book presents new evidence on the incidence, characteristics, and drivers of high-growth firms based on in-depth studies of firm dynamics in Brazil, Côte d’Ivoire, Ethiopia, Hungary, India, Indonesia, Mexico, South Africa, Thailand, Tunisia, and Turkey. Its findings reveal that high-growth firms are not only powerful engines of job and output growth but also create positive spillovers for other businesses along the value chain. At the same time, the book debunks several myths about policies to support firm dynamism that focus on outward characteristics, such as firm size, sector, location, or past performance. Its findings show that most firms struggle to sustain rapid rates of expansion and that the relationship between high growth and productivity is often weak. Consequently, the book calls for a shift toward policies that improve the quality of firm growth by supporting innovation, managerial skills, and firms’ ability to leverage global linkages and agglomeration. To help policy makers structure policies that support firm growth, the book proposes a new ABC framework of growth entrepreneurship: improving Allocative efficiency, encouraging Business-to-business spillovers, and strengthening firm Capabilities. This book is the third volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers. 'Policy makers often get carried away by the disproportionate contributions of high-growth firms to job and output growth and commit to pursuing policies targeting the potential ‘stars.’ This book separates fact from fiction underpinning such interventions through a comprehensive analysis of high-growth firms across a range of developing countries, making a compelling argument that public policy to pick prospective winners is neither possible nor desirable. Policy makers would be wise to consult its arguments and policy advice when designing the next generation of policies to support the growth of firms.' William R. Kerr Professor of Business Administration, Harvard University; author of The Gift of Global Talent: How Migration Shapes Business, Economy and Society 'How to ignite and sustain high firm growth has eluded both economic analysis and thought leaders in policy and business. Through its meticulous and thoughtful analysis, this important new book provides a tractable framework to guide policy to harness the growth and productivity potential of firms in the developing-country context.' David Audretsch Distinguished Professor and Director of the Institute for Development Strategies, Indiana University .

Remarkably, a small fraction of firms account for most of the job and output creation in high-income and developing countries alike. Does this imply that the path to enabling more economic dynamism lies in selectively targeting high-potential firms? Or would pursuing broad-based reforms that minimize distortions be more effective? Inspired by these questions, this book presents new evidence on the incidence, characteristics, and drivers of high-growth firms based on in-depth studies of firm dynamics in Brazil, Côte d'Ivoire, Ethiopia, Hungary, India, Indonesia, Mexico, South Africa, Thailand, Tunisia, and Turkey. Its findings reveal that high-growth firms are not only powerful engines of job and output growth but also create positive spillovers for other businesses along the value chain. At the same time, the book debunks several myths about policies to support firm dynamism that focus on outward characteristics, such as firm size, sector, location, or past performance. Its findings show that most firms struggle to sustain rapid rates of expansion and that the relationship between high growth and productivity is often weak. Consequently, the book calls for a shift toward policies that improve the quality of firm growth by supporting innovation, managerial skills, and firms' ability to leverage global linkages and agglomeration. To help policy makers structure policies that support firm growth, the book proposes a new ABC framework of growth entrepreneurship: improving Allocative efficiency, encouraging Business-to-business spillovers, and strengthening firm Capabilities. This book is the third volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers. 'Policy makers often get carried away by the disproportionate contributions of high-growth firms to job and output growth and commit to pursuing policies targeting the potential 'stars.' This book separates fact from fiction underpinning such interventions through a comprehensive analysis of high-growth firms across a range of developing countries, making a compelling argument that public policy to pick prospective winners is neither possible nor desirable. Policy makers would be wise to consult its arguments and policy advice when designing the next generation of policies to support the growth of firms.' William R. Kerr Professor of Business Administration, Harvard University; author of The Gift of Global Talent: How Migration Shapes Business, Economy and Society 'How to ignite and sustain high firm growth has eluded both economic analysis and thought leaders in policy and business. Through its meticulous and thoughtful analysis, this important new book provides a tractable framework to guide policy to harness the growth and productivity potential of firms in the developing-country context.' David Audretsch Distinguished Professor and Director of the Institute for Development Strategies, Indiana University .

This publication supports policymakers in Eastern Europe and the South Caucasus sub-region in designing effective policies that optimize the potential for innovative, high-growth entrepreneurship. These countries are transitioning to a knowledge-based economy, a shift which requires important structural transformation and the identification of key drivers to make this happen. Due to their potential in facilitating job growth and value creation, innovative high-growth enterprises (IHGEs) can become one such key driver of this transformation. Through their experimentation with new ideas and response to new incentives (e.g. technological, regulatory and market trends), IHGEs can contribute to the necessary structural economic changes, while creating new market niches and positive societal spill-overs (e.g. meeting societal challenges).

Small and medium-sized enterprises (SMEs) that scale up have long raised policy interest for their extraordinary potential in terms of job creation, innovation, competitiveness and economic growth. Yet, little is known about which firms could effectively become scalers, and what policies could effectively promote SME growth.

The COVID-19 crisis caused profound disruptions in the global economy, with SMEs and entrepreneurs, particularly hard hit. Swift measures implemented by governments and public financial institutions provided a crucial lifeline for liquidity-strapped SMEs. The 10th edition of Financing SMEs and Entrepreneurs 2022: An OECD Scoreboard sheds light on the impacts of the crisis on SME finance, tracking the latest developments in debt, equity, asset-based finance, and framework conditions, along with recent policy developments for 48 countries around the world.

The Promises and Properties of Rapidly Growing Companies contributes to contemporary thought on so-called gazelles – high performing market players that create many jobs and promise strong welfare effects – a valuable resource for academics, managers, policy makers and civil society actors.

This book, originally published in 1989, studies both the growth and the barriers to growth of small firms. It examines market and industrial structures, also the role of investment institutions and their handling of small business accounts. There are chapters on management attitudes and ability considered as a potential barrier to development, and other problems such as lack of finance and of a suitably qualified workforce. The book stresses the importance of communicating the latest advances in technology to small firms, and urges the need to re-think government tax and procurement policies.