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The influence of age on SMEs’ growth determinants: empirical evidence

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  • Paulo Nunes

    ()

  • Marco Gonçalves
  • Zélia Serrasqueiro

Abstract

This paper seeks to investigate whether age is a fundamental characteristic of the relationships between determinants and growth. The empirical evidence obtained allows us to conclude that: (1) age and size are restrictive factors of the growth of young SMEs, but they are not important for the growth of old SMEs; (2) cash flow and debt are of greater relative importance for growth in young SMEs than for growth in old SMEs; (3) R&D intensity and labour productivity are of greater relative importance for growth in old SMEs than for growth in young SMEs; (4) interest on debt is of greater relative importance for diminished growth in young SMEs than for diminished growth in old SMEs; and (5) R&D intensity in situations of financial deficit is of greater relative importance for diminished growth in young SMEs than for diminished growth in old SMEs, but only in context of high-tech SMEs. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Paulo Nunes & Marco Gonçalves & Zélia Serrasqueiro, 2013. "The influence of age on SMEs’ growth determinants: empirical evidence," Small Business Economics, Springer, vol. 40(2), pages 249-272, February.
  • Handle: RePEc:kap:sbusec:v:40:y:2013:i:2:p:249-272
    DOI: 10.1007/s11187-011-9363-2
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    Cited by:

    1. repec:kap:sbusec:v:50:y:2018:i:2:d:10.1007_s11187-016-9831-9 is not listed on IDEAS
    2. Juan Federico & Joan-Lluis Capelleras, 2015. "The heterogeneous dynamics between growth and profits: the case of young firms," Small Business Economics, Springer, vol. 44(2), pages 231-253, February.
    3. Olubunmi Ipinnaiye & Declan Dineen & Helena Lenihan, 2017. "Drivers of SME performance: a holistic and multivariate approach," Small Business Economics, Springer, vol. 48(4), pages 883-911, April.
    4. Carlo Corradini & Pelin Demirel & Giuliana Battisti, 2016. "Technological diversification within UK’s small serial innovators," Small Business Economics, Springer, vol. 47(1), pages 163-177, June.
    5. Mita Bhattacharya, 2014. "Business Growth, Size and Age: Evidence from the Business Longitudinal Survey (BLS) Data in Australia," Australian Economic Papers, Wiley Blackwell, vol. 53(3-4), pages 129-138, December.
    6. Dirk Burghardt & Marco Helm, 2015. "Firm growth in the course of mergers and acquisitions," Small Business Economics, Springer, vol. 44(4), pages 889-904, April.
    7. Tommaso Minola & Silvio Vismara & Davide Hahn, 2017. "Screening model for the support of governmental venture capital," The Journal of Technology Transfer, Springer, vol. 42(1), pages 59-77, February.
    8. repec:rom:mancon:v:11:y:2017:i:1:p:617-632 is not listed on IDEAS
    9. repec:spr:joevec:v:28:y:2018:i:1:d:10.1007_s00191-017-0502-z is not listed on IDEAS

    More about this item

    Keywords

    Age; High-Tech SMEs; Growth; Old SMEs; Panel data; Young SMEs; C23; G32; L21; L25; L26;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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