A cautionary note on using the Eurostat-OECD definition of high-growth firms
AbstractRecent studies have suggested that most firms do not grow, and that a small number of high-growth firms create most new jobs. High-growth firms have therefore attracted an increasing amount of attention from researchers and policymakers. However, there is no uniform definition of what constitutes a high-growth firm in the literature. Eurostat and the Organisation for Economic Co-operation and Development (OECD) recently recommended that high-growth firms should be defined as firms with at least ten employees in the start-year and annualized employment (or sales) growth exceeding 20% during a 3-year period. This definition would exclude almost 95% of surviving firms in Sweden and about 40% of new private jobs during 2005-2008. We therefore advise caution in using this definition.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HUI Research in its series HUI Working Papers with number 65.
Length: 10 pages
Date of creation: 19 Apr 2012
Date of revision:
Contact details of provider:
Postal: HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden
Phone: +46 (0)8 762 72 80
Fax: +46 (0)8 679 76 06
Web page: http://www.hui.se/
More information through EDIRC
High-growth firms; high-impact firms; gazelles; OECD definition;
Find related papers by JEL classification:
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 365-391, June.
- Paul Schreyer, 2000. "High-Growth Firms and Employment," OECD Science, Technology and Industry Working Papers 2000/3, OECD Publishing.
- Delmar, Frederic & Davidsson, Per & Gartner, William B., 2003. "Arriving at the high-growth firm," Journal of Business Venturing, Elsevier, vol. 18(2), pages 189-216, March.
- Simon C. Parker & Emilio Congregado & Antonio A. Golpe, 2012. "Testing for hysteresis in entrepreneurship in 23 OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 19(1), pages 61-66, January.
- Henrekson, Magnus & Johansson, Dan, 2008.
"Gazelles as Job Creators – A Survey and Interpretation of the Evidence,"
Ratio Working Papers
117, The Ratio Institute.
- Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Working Paper Series 733, Research Institute of Industrial Economics.
- Mark Rogers & Christian Helmers & Christoffer Koch, 2010. "Firm growth and firm size," Applied Economics Letters, Taylor & Francis Journals, vol. 17(16), pages 1547-1550.
- Hart Hodges & Stein �stbye, 2010. "Is small firm gardening good for local economic growth?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(8), pages 809-813.
- Daunfeldt, Sven-Olov & Halvarsson, Daniel, 2012. "Are high-growth firms one-hit wonders? Evidence from Sweden," HUI Working Papers 73, HUI Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Nilsson).
If references are entirely missing, you can add them using this form.