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The Risk of growing fast: does fast growth have a negative impact on the survival rates of firms?

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  • Jan de Kok
  • Haibo Zhou
  • Chantal Hartog
  • Peter van der Zwan

Abstract

Fast-growing firms are considered as the central drivers of job creation in the economy. There is an abundance of literature on the separate subjects of firm growth and firm survival. However, the relationship between survival and growth is neglected. Using the Dutch Longitudinal Enterprise Database 1993-1999, we investigate whether high employment growth rates in the recent past have a negative impact on firm survival. Our results do not find support for this relationship for the population of enterprises with a stable or growing employment development. Thus, we find no evidence that policies stimulating fast-growing firms may result in more firm deaths.

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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H201209.

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Length: 18 pages
Date of creation: 18 Oct 2012
Date of revision:
Handle: RePEc:eim:papers:h201209

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