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What characterizes a fast-growing firm?

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  • Matthias Almus

Abstract

The paper seeks to empirically identify factors that influence the probability of being a fast-growing firm in Eastern and Western Germany. Descriptive analyses have shown that most firms experience only small positive or negative employment growth or stagnate over time. The job generation mechanism rests with a handful of firms that increase their employment significantly over time. The empirical analysis shows that the probability of being a fast-growing firm depends on different factors when separating Eastern and Western Germany as well as using different definitions of fast-growing firms. Moreover, the analysis shows that technology-intensive manufacturing branches and knowledge-based business-related services do not generate the majority of fast-growing firms.

Suggested Citation

  • Matthias Almus, 2002. "What characterizes a fast-growing firm?," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1497-1508.
    • Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1497-1508
    DOI: 10.1080/00036840110105010
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    References listed on IDEAS

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    1. Almus, Matthias & Prantl, Susanne, 2001. "Die Auswirkungen öffentlicher Gründungsförderung auf das Überleben und Wachstum junger Unternehmen," ZEW Discussion Papers 01-03, ZEW - Leibniz Centre for European Economic Research.
    2. Almus, Matthias & Engel, Dirk & Prantl, Susanne, 2000. "The Mannheim Foundation Panels of the Centre for European Economic Research (ZEW)," ZEW Dokumentationen 00-02, ZEW - Leibniz Centre for European Economic Research.
    3. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
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