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The Risk of growing fast: does fast growth have a negative impact on the survival rates of firms?

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Listed:
  • Jan de Kok
  • Haibo Zhou
  • Chantal Hartog
  • Peter van der Zwan

Abstract

Fast-growing firms are considered as the central drivers of job creation in the economy. There is an abundance of literature on the separate subjects of firm growth and firm survival. However, the relationship between survival and growth is neglected. Using the Dutch Longitudinal Enterprise Database 1993-1999, we investigate whether high employment growth rates in the recent past have a negative impact on firm survival. Our results do not find support for this relationship for the population of enterprises with a stable or growing employment development. Thus, we find no evidence that policies stimulating fast-growing firms may result in more firm deaths.

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  • Jan de Kok & Haibo Zhou & Chantal Hartog & Peter van der Zwan, 2012. "The Risk of growing fast: does fast growth have a negative impact on the survival rates of firms?," Scales Research Reports H201209, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201209
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    References listed on IDEAS

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    Cited by:

    1. Alb Maria, 2015. "Theoretical And Practical Considerations On Financial Autonomy And Balance Local Budgets In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 239-245, February.
    2. Alex Coad & Masatoshi Kato, 2021. "Growth paths and routes to exit: 'shadow of death' effects for new firms in Japan," Small Business Economics, Springer, vol. 57(3), pages 1145-1173, October.
    3. Nicolae BIBU & Diana SALA & Maria ALB, 2014. "General Features Of The Romanian Fast Growth Oriented Firms," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 75-84, November.

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