Comparing young SMEs' growth determinants across regions

Comparing young SMEs' growth determinants across regions Purpose – The aim of this study is to advance the understanding of firm growth determinants by comparing the factors influencing young firms' growth in 13 countries corresponding to three contrasting regions. Design/methodology/approach – The authors propose an integrated model of venture growth where entrepreneurs' profile, firm resources and market characteristics are combined. This model is tested using three OLS regressions, one corresponding to each region. Findings – The results show that compared with the remainder two regions, the less favorable business conditions verified in Latin American countries emphasize the relevance of entrepreneurs' human capital endowments in determining business development and its further growth. On the contrary, market‐related issues and the availability of financial resources are more important in South‐East Asia and Mediterranean Europe. Team size and particularly its growth are positively associated with firm growth in all the studied regions. Practical implications – The results of this study confirm that a firm's growth determinants as well as their importance vary across regions. Consequently, policy interventions should take into account the specificity of each region when designing entrepreneurial policies, avoiding the adoption of “one size fits all” solutions. Originality/value – The main contribution of this paper is twofold: first, it collects empirical evidence about young firm growth in less studied regions; second, by comparing the results for each region differential effects of several determinants of firm growth in quite contrasting contexts are discussed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Small Business and Enterprise Development Emerald Publishing

Comparing young SMEs' growth determinants across regions

Loading next page...
 
/lp/emerald-publishing/comparing-young-smes-growth-determinants-across-regions-fV1lr6yGUq
Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1462-6004
DOI
10.1108/14626001211277406
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim of this study is to advance the understanding of firm growth determinants by comparing the factors influencing young firms' growth in 13 countries corresponding to three contrasting regions. Design/methodology/approach – The authors propose an integrated model of venture growth where entrepreneurs' profile, firm resources and market characteristics are combined. This model is tested using three OLS regressions, one corresponding to each region. Findings – The results show that compared with the remainder two regions, the less favorable business conditions verified in Latin American countries emphasize the relevance of entrepreneurs' human capital endowments in determining business development and its further growth. On the contrary, market‐related issues and the availability of financial resources are more important in South‐East Asia and Mediterranean Europe. Team size and particularly its growth are positively associated with firm growth in all the studied regions. Practical implications – The results of this study confirm that a firm's growth determinants as well as their importance vary across regions. Consequently, policy interventions should take into account the specificity of each region when designing entrepreneurial policies, avoiding the adoption of “one size fits all” solutions. Originality/value – The main contribution of this paper is twofold: first, it collects empirical evidence about young firm growth in less studied regions; second, by comparing the results for each region differential effects of several determinants of firm growth in quite contrasting contexts are discussed.

Journal

Journal of Small Business and Enterprise DevelopmentEmerald Publishing

Published: Oct 26, 2012

Keywords: Firm growth; Young firms; Latin America; Mediterranean Europe; South East Asia; Business development; Corporate ventures

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off