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High-growth firms in Georgia

Author

Listed:
  • Choi, Taelim

    () (Federal Reserve Bank of Atlanta)

  • Robertson, John C.

    () (Federal Reserve Bank of Atlanta)

  • Rupasingha, Anil

    () (Federal Reserve Bank of Atlanta)

Abstract

This paper reports the results of a study of the characteristics and direct employment impact of high-growth firms operating in Georgia. The longitudinal data used in this study are from the National Establishment Time-Series (NETS) database. Using a standard definition of high employment growth to classify firms, we track the direct employment contribution of high-growth firms in the state from 1989 to 2009. We find that only a small fraction of firms satisfied the high-growth employment criteria in any year, but these rapidly growing firms made a disproportionately large contribution to overall job creation in the state. We discover that, as has been found for the United States as a whole, the number of high-growth firms and their average job creation has declined during last decade. We also find that the incidence of high growth and the resulting job creation differ significantly according to size, age, industry, type of organizational structure, and ownership as well as location. A separate analysis focusing on firms with rapid sales revenue growth reveals that firms with fast-growing revenue- are not necessarily firms with fast-growing employment.

Suggested Citation

  • Choi, Taelim & Robertson, John C. & Rupasingha, Anil, 2013. "High-growth firms in Georgia," FRB Atlanta Working Paper 2013-20, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2013-20
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    File URL: http://www.frbatlanta.org/documents/pubs/wp/wp1320.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. David Neumark & Junfu Zhang & Brandon Wall, 2005. "Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series," PPIC Working Papers 2005.11, Public Policy Institute of California.
    3. Daunfeldt, Sven-Olov & Elert, Niklas & Johansson, Dan, 2010. "The economic contribution of high-growth firms: Do definitions matter?," HUI Working Papers 35, HUI Research.
    4. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    5. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    6. Simon Parker & David Storey & Arjen Witteloostuijn, 2010. "What happens to gazelles? The importance of dynamic management strategy," Small Business Economics, Springer, vol. 35(2), pages 203-226, September.
    7. Colin Mason & Ross Brown, 2013. "Creating good public policy to support high-growth firms," Small Business Economics, Springer, vol. 40(2), pages 211-225, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    high-growth firms; NETS data; job creation; firm age; firm size; industry; organizational structure; business dynamics; location;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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