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Theoretical Definition of a Scale-up

In: Scale-ups and High-Growth Firms

Author

Listed:
  • Alex Coad

    (Waseda University)

  • Anders Bornhäll

    (Institute of Retail Economics)

  • Sven-Olov Daunfeldt

    (Confederation of Swedish Enterprise)

  • Alexander McKelvie

    (Syracuse University)

Abstract

This chapter draws on the literature to develop our theoretical definition of a scale-up. A critical discussion of previous literature helps distinguish between aspects that are essential or unnecessary for a definition of a scale-up. We then put forward the following five suggestions for a theoretical definition of a scale-up: (1) Scale-ups are in all sectors, not just IT; (2) Scale-ups have relatively high levels of spending on marketing and sales; (3) Scale-ups have low marginal costs of production; (4) Scale-ups are young, but not too young; (5) In defining scale-ups, we start from the set of HGFs. The chapter ends with our own theoretical definition of a scale-up.

Suggested Citation

  • Alex Coad & Anders Bornhäll & Sven-Olov Daunfeldt & Alexander McKelvie, 2024. "Theoretical Definition of a Scale-up," SpringerBriefs in Business, in: Scale-ups and High-Growth Firms, chapter 0, pages 31-42, Springer.
    • Handle: RePEc:spr:spbrcp:978-981-97-1379-0_5
    DOI: 10.1007/978-981-97-1379-0_5
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