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Empirical Analysis of Business Growth Factors Using Swedish Data

Author

Listed:
  • Per Davidsson
  • Bruce Kirchhoff
  • Abdulnasser Hatemi–j
  • Helena Gustavsson

Abstract

Empirical research conducted on the U.S., German, Australian, and Scottish economies has shown that age, size, location, legal form, and industry are related to business growth. Much of this research has focused on manufacturing firms, thus providing little information about the effect of industrial sector differences on these factors. We seek to both confirm that small independent firms demonstrate the greatest growth rates and to explore the effects of the industrial sector on this conclusion.This article uses Swedish data to replicate previous research while using a different definition of business to enhance the study of effects from industry, international versus domestic businesses, and domestic versus foreign ownership. Results show that business age, beginning size, ownership form, industrial sector, and legal form are the most important factors related to growth. Although business growth differs among industrial sectors, youth, ownership independence, and small size are major factors that underlie growth across all industries.

Suggested Citation

  • Per Davidsson & Bruce Kirchhoff & Abdulnasser Hatemi–j & Helena Gustavsson, 2002. "Empirical Analysis of Business Growth Factors Using Swedish Data," Journal of Small Business Management, Taylor & Francis Journals, vol. 40(4), pages 332-349, October.
    • Handle: RePEc:taf:ujbmxx:v:40:y:2002:i:4:p:332-349
    DOI: 10.1111/1540-627X.00061
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    Cited by:

    1. Jiaqi Qin & Yan Sun, 2023. "Unveil the veil of limited liability: Evidence from firm investment," The Financial Review, Eastern Finance Association, vol. 58(3), pages 485-511, August.
    2. Maresch, Daniela & Leo, Hannes & Walsh, Steven T., 2023. "Hotspurs in, sober bores out: A call and an agenda for entrepreneurship and innovation policies that foster rapidly scaling ventures," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Rolando Vaz, 2023. "Firm growth in the Portuguese footwear industry: the location dilemma," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 407-427, April.

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