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Small Business Growth in the Short Run

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  • Johnson, Peter
  • Conway, Cheryl
  • Kattuman, Paul

Abstract

This paper examines the determinants of short run employment growth in very small firms in the services sector. The study shows evidence of non linearities in the growth-size relationship, and it is argued that these non linearities reflect the short run constraints that small firms face in adjusting to demand shocks. The paper also suggests that there are other systematic influences on growth apart from size. The paper draws on survey evidence from the Northern Region of the United Kingdom. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Johnson, Peter & Conway, Cheryl & Kattuman, Paul, 1999. "Small Business Growth in the Short Run," Small Business Economics, Springer, vol. 12(2), pages 103-112, March.
    • Handle: RePEc:kap:sbusec:v:12:y:1999:i:2:p:103-12
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    Citations

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    Cited by:

    1. Slavec, Alenka & Prodan, Igor, 2012. "The influence of entrepreneur’s characteristics on small manufacturing firm debt financing," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(1), pages 104-130.
    2. Stephan Weemaes & Johan Bruneel & Ann Gaeremynck & Jonas Debrulle, 2022. "Initial external knowledge sources and start-up growth," Small Business Economics, Springer, vol. 58(1), pages 523-540, January.
    3. Daunfeldt, Sven-Olov & Elert, Niklas & Lang, Ã…sa, 2012. "Does Gibrat's law hold for retailing? Evidence from Sweden," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 464-469.
    4. Besnik A. Krasniqi & Saranda Lajqi, 2018. "Gibrat’S Law And Jovanovic’S Learning Theory: An Empirical Test For Small Firms In A Postconflict Economic Setting," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 69(3), pages 251-268.
    5. Junho Na & Jeong-dong Lee & Chulwoo Baek, 2017. "Is the service sector different in size heterogeneity?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 12(1), pages 95-120, April.
    6. Sven-Olov Daunfeldt & Niklas Elert, 2013. "When is Gibrat’s law a law?," Small Business Economics, Springer, vol. 41(1), pages 133-147, June.
    7. Daunfeldt, Sven-Olov & Lang, Åsa & Macuchova, Zuzana & Rudholm, Niklas, 2011. "Firm Growth in the Retail and Wholesale Trade Sectors – Evidence from Sweden," HUI Working Papers 50, HUI Research.
    8. ŠEmsa ÖZAR & Gökhan ÖZERTAN & Zeynep Burcu İRFANOĞLU, 2008. "Micro And Small Enterprise Growth In Turkey: Under The Shadow Of Financial Crisis," The Developing Economies, Institute of Developing Economies, vol. 46(4), pages 331-362, December.
    9. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
    10. Addisu Molla, 2017. "Growth Potential and Business Constraints of Micro and Small Enterprises in South Wollo Zone, Amhara Region, Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 25(1), March.
    11. Tang, Ali, 2014. "Does Gibrat’s Law Hold for Swedish Energy Firms?," HUI Working Papers 99, HUI Research.
    12. Kathleen Sherrieb & Fran Norris & Sandro Galea, 2010. "Measuring Capacities for Community Resilience," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(2), pages 227-247, November.
    13. Aili Tang, 2015. "Does Gibrat’s law hold for Swedish energy firms?," Empirical Economics, Springer, vol. 49(2), pages 659-674, September.
    14. Chai, D.H., 2010. "Foreign Corporate Ownership and Dividends," Working Papers wp401, Centre for Business Research, University of Cambridge.
    15. Bilitis Schoonjans & Philippe Cauwenberge & Heidi Bauwhede, 2013. "Formal business networking and SME growth," Small Business Economics, Springer, vol. 41(1), pages 169-181, June.

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