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On the consequences of firm growth
Recent contributions to the literature on small firm growth have been marked by a growing sense of frustration with the state-of-the-art and what it implicates in both theory and policy. In short, while growth episodes appear relatively common, a tiny proportion of firms sustain growth and ‘scale’....
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
SAGE Publications
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9483699/ https://www.ncbi.nlm.nih.gov/pubmed/36147205 http://dx.doi.org/10.1177/02662426221074053 |
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author | Freel, Mark Gordon, Ian |
author_facet | Freel, Mark Gordon, Ian |
author_sort | Freel, Mark |
collection | PubMed |
description | Recent contributions to the literature on small firm growth have been marked by a growing sense of frustration with the state-of-the-art and what it implicates in both theory and policy. In short, while growth episodes appear relatively common, a tiny proportion of firms sustain growth and ‘scale’. This calls into question the very basis upon which policies seeking to target high growth firms (HGFs) rest. In addition, it cautions against perspectives that view growth as the essence of entrepreneurship. In this paper, we argue that understanding the frequency of growth episodes and the rarity of sustained growth requires a better understanding of growth consequences. To this end, we describe case study evidence from ambitious entrepreneurs whose firms experienced an episode of high growth followed by longer periods of mixed performance. Our goal is to shed light on how the experience of growing affects further growth. Our data provide initial insights into the mechanisms linking past growth to growth motivations and into the ways in which past growth lays the foundations for future performance. |
format | Online Article Text |
id | pubmed-9483699 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | SAGE Publications |
record_format | MEDLINE/PubMed |
spelling | pubmed-94836992022-09-20 On the consequences of firm growth Freel, Mark Gordon, Ian Int Small Bus J Articles Recent contributions to the literature on small firm growth have been marked by a growing sense of frustration with the state-of-the-art and what it implicates in both theory and policy. In short, while growth episodes appear relatively common, a tiny proportion of firms sustain growth and ‘scale’. This calls into question the very basis upon which policies seeking to target high growth firms (HGFs) rest. In addition, it cautions against perspectives that view growth as the essence of entrepreneurship. In this paper, we argue that understanding the frequency of growth episodes and the rarity of sustained growth requires a better understanding of growth consequences. To this end, we describe case study evidence from ambitious entrepreneurs whose firms experienced an episode of high growth followed by longer periods of mixed performance. Our goal is to shed light on how the experience of growing affects further growth. Our data provide initial insights into the mechanisms linking past growth to growth motivations and into the ways in which past growth lays the foundations for future performance. SAGE Publications 2022-09-17 2022-09 /pmc/articles/PMC9483699/ /pubmed/36147205 http://dx.doi.org/10.1177/02662426221074053 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage). |
spellingShingle | Articles Freel, Mark Gordon, Ian On the consequences of firm growth |
title | On the consequences of firm growth |
title_full | On the consequences of firm growth |
title_fullStr | On the consequences of firm growth |
title_full_unstemmed | On the consequences of firm growth |
title_short | On the consequences of firm growth |
title_sort | on the consequences of firm growth |
topic | Articles |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9483699/ https://www.ncbi.nlm.nih.gov/pubmed/36147205 http://dx.doi.org/10.1177/02662426221074053 |
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