Public policy and high growth firms

2012 ◽  
Vol 27 (4) ◽  
pp. 329-331 ◽  
Author(s):  
David Walburn
Keyword(s):  
Public Policy ◽  
Early Stage ◽  
High Growth ◽  
Start Up ◽  
Growth Firms ◽  
Rates Of Growth

There are signs that public policy is catching on to an understanding that not only start-up firms can achieve high rates of growth. More research is needed to find out what the needs of more mature enterprises might be, before policy lurches away from supporting early stage companies.

Look Before You Leap (A): Considering a Job Offer With an Early-Stage Company

2017 ◽  
pp. 1-9
Author(s):  
Steven Rogers ◽  
Sachin Waikar ◽  
Scott T. Whitaker
Keyword(s):  
Early Stage ◽  
High Growth ◽  
Point Of View ◽  
Entrepreneurial Firm ◽  
Start Up ◽  
Management Responsibility ◽  
Base Salary ◽  
The Difference ◽  
To Come ◽  
Real Person

In the fall of 2007 a senior director of product marketing at Qwest in Denver, Colorado, gets an offer to work for an entrepreneurial high-growth venture. The vision is for greater wealth, accelerated business opportunity, more thrill on the job, and faster path to leadership by pursuing a position with a start-up firm. Kiva Allgood has management responsibility in her current position (e.g., manages a high-budget portfolio), with compensation of $145,000 in salary and incentive bonuses up to 100% of base salary. She realizes that she is not prepared for the negotiation because she has only negotiated job offers within large firms. She needs to know what many of these entrepreneurial finance terms mean and to understand whether she is being offered terms and amounts commensurate with the value she feels she will bring to the entrepreneur. She also needs to understand her opportunity cost and the expected value of her options: staying with the current job, starting her own venture, or taking this offer at the entrepreneurial venture. She had no idea there were also so many additional, non-financial factors to take into consideration. With her future on the line, she needs to work through the numbers fast. The entrepreneur gave her five days to come back with a counter offer, which he considered a generous amount of time. In evaluating these questions, students will take Allgood's point of view. The case is based on a real job offer to a real person named Kiva Allgood. The entrepreneur and his firm are fictitious in order to heighten the issues in this situation.Exposes customary negotiations between a prospective employee and an entrepreneur, taking into account the valuation of the entrepreneurial firm, salary, stock options, ownership percentage, etc.; Examines the difference between considering a position with an entrepreneurial venture and one at a stable corporate organization; Looks at typical compensation criteria for entrepreneurial venture capital-backed firms; Introduces method for assessing an entrepreneur as a prospective future employer.

Achieving and Sustaining New Knowledge Development in High-Expectation Start-ups

2010 ◽  
Vol 24 (1) ◽  
pp. 47-53
Author(s):  
Diego Matricano
Keyword(s):  
Competitive Advantage ◽  
Early Stage ◽  
High Growth ◽  
Knowledge Development ◽  
High Expectation ◽  
Knowledge Based ◽  
Start Up ◽  
New Knowledge ◽  
Start Ups

In markets characterized by strong competition, new knowledge and new knowledge development are generally recognized as the key means for an enterprise to gain competitive advantage. This knowledge-based competitive advantage is critical for all commercial ventures, but is especially so for high-expectation start-ups (technology-based ventures anticipating high growth rates). Even though the organizational processes of a start-up are still under development, the success of new knowledge development is affected by three critical factors – the structure of the enterprise, the organizational technology and the knowledge promoters. An analysis of these factors suggests that the role of the knowledge promoter is the key determinant of knowledge development success in the case of early-stage high-expectation start-ups.

When startups exit: comparing strategies in Europe and the USA

2018 ◽  
Vol 39 (3) ◽  
pp. 26-33 ◽  
Author(s):  
Alessia Pisoni ◽  
Alberto Onetti
Keyword(s):  
Early Stage ◽  
High Growth ◽  
High Tech ◽  
Venture Capitalists ◽  
Content Type ◽  
Early Exit ◽  
Start Up ◽  
The Usa ◽  
Local Companies ◽  
Start Ups

Purpose The purpose of this paper is to present an overview of trends toward start-up exits. Exits represent the “end phase” of the start-up process, at least for the founders and the early investors. For high-growth venture-capital-backed companies, exits are often considered the ultimate goal of building a profitable venture. These ventures are intended from the beginning to harvest the financial value created by the business at some point in the future, and return capital to early investors. Design/methodology/approach The authors tracked 5,744 merger and acquisition transactions that have occurred between European and US tech start-ups since 2012. Data are drawn from CrunchBase, the most comprehensive database of high-tech companies and investors with information on the companies and investors around the world. The authors then compared the trends of acquisitions between European and US companies. Findings Results show that US companies are far more inclined to make acquisitions than European ones. Acquirers of start-ups, both from Europe and the US, prefer to buy local companies. However, recently, US companies have started to show more interest in European start-ups. Thus, signaling that the European start-up ecosystem is growing and becoming more attractive for US buyers. Furthermore, results show that start-up exits typically happen within a few years after a company’s establishment. Research limitations/implications The research does not take into consideration the price of the transaction, or the amount of capital invested by venture capitalists in the high-tech start-ups that have been acquired. Further research should address this specific problem by helping European start-ups understand how to plan the exit phase within few years from establishment. Practical implications The results have important implications both for entrepreneurs/managers and policymakers. Early exit appears to be a global trend among start-ups. This suggests that the exit phase should be properly planned to happen in the very early stage of the start-up process. On the other hand, the research also shows that there is still a gap to be filled in the European start-up ecosystems’ ability to produce exits and create new large innovative companies (the so-called “unicorns”). Originality/value To date, there has been a little research about exits for young high-tech ventures. This paper will attempt to shed new light on this so far under-explored issue by specifically analyzing exits as financial strategy for investors and entrepreneurs.

High-growth firms: A new policy paradigm or a need for caution?

2012 ◽  
Vol 27 (4) ◽  
pp. 326-328 ◽  
Author(s):  
James Derbyshire
Keyword(s):  
High Growth ◽  
Growth Potential ◽  
Short Paper ◽  
Policy Paradigm ◽  
Start Up ◽  
Opportune Time ◽  
Growth Firms ◽  
Future Direction ◽  
High Growth Potential ◽  
Enterprise Policy

UK enterprise policy is going through a period of relative hiatus and reflection, offering an opportune time to consider its possible future direction. One shift in the policy focus could be from an emphasis on start-up to the support of firms with high-growth potential. This short paper suggests some reasons for caution when considering such a refocusing of policy.

Forms of growth: How SMEs combine forms of growth to achieve high growth

2012 ◽  
Vol 18 (1) ◽  
pp. 81-97 ◽  
Author(s):  
Jose Luis Barbero Navarro ◽  
Jose Carlos Casillas ◽  
Bruce Barringer
Keyword(s):  
Growth Rate ◽  
High Growth ◽  
Past Research ◽  
Demographic Variables ◽  
Growth Strategy ◽  
Annual Growth Rate ◽  
Client Retention ◽  
Growth Firms ◽  
Geographical Expansion ◽  
Rates Of Growth

AbstractThe majority of the literature on high-growth firms focuses on two main aspects: growth factors and rates of growth, but little information exists on how SMEs grow. Past research has implicitly considered high-growth firms as a homogeneous category of businesses, however, in reality, they use different forms of growth: domestic and international geographical expansion, the launch of new related and unrelated products, product improvement, client retention and the acquisition of new clients. This work attempts to identify how high-growth SMEs benefit from different combinations of forms of growth to perform successfully. A sample of 89 high-growth SMEs was selected – with an annual growth rate of more than 10% over a 5-year period – and, by means of a cluster analysis, we found four significantly different combinations of forms of growth. To externally test the robustness of those combinations, a group of demographic variables was considered (size, age, sector), as well as a set of variables related to the growth strategy (personnel involvement, the extent to which growth is a priority, perceived growth with respect to competitors), which support the existence of significant differences between the groups.

scholarly journals Wishful Thinking versus Reality: High-growth Aspirations of Start-ups and Established Entrepreneurs in ASEAN

2020 ◽  
Vol 25 (1) ◽  
Author(s):  
Ulrike Guelich
Keyword(s):  
Empirical Study ◽  
Early Stage ◽  
High Growth ◽  
Female Entrepreneurs ◽  
Individual Level ◽  
Market Expansion ◽  
Country Level ◽  
Growth Firms ◽  
Asean Countries ◽  
Start Ups

Most enterprises in the Association of Southeast Asian Nations (ASEAN) are micro and small enterprises. Few have aspirations to “dream big.” From an economic perspective, high-growth firms provide many benefits. This empirical study explores both country-level contextual factors such as country competitiveness or innovativeness and individual-level factors associated with high-growth, such as an entrepreneur’s market expansion plans, new product perceptions, export orientation and use of latest technologies. In this context, we investigate whether to “dream big” is associated with specific strategic intentions and which influencing factors hinder or foster aspirations to grow the business by more than 20 employees within five years while developing it into an established business. Utilising random sampling of data in six ASEAN countries, collected in the years 2013 to 2015 and comparing male to female entrepreneurs, the regression results of this empirical study show that although high growth-oriented entrepreneurs in both start-ups and established enterprises account for only 2.7% of all enterprises in this study, high-growth aspirations can only partially be sustained by early-stage entrepreneurs into the next business phase since it depends on several factors: (1) receiving funding (for both genders); (2) being export oriented (for male entrepreneurs); and (3) perceptions of having new products or services to offer to the market (for women entrepreneurs). Both genders are less prone to pursue their initial early-stage growth goals as established entrepreneurs. We infer that established entrepreneurs gain more clarity on the deployment of growth through implementation in the organisation while running their businesses and therefore may be more realistic in their predictions or less confident in their pursuit of ambitious goals.

scholarly journals Where Do Accelerators Fit in the Venture Creation Pipeline? Different Values Brought by Different Types of Accelerators

2018 ◽  
Vol 8 (4) ◽  
Author(s):  
Shu Yang ◽  
Romi Kher ◽  
Thomas S. Lyons
Keyword(s):  
Economic Development ◽  
Early Stage ◽  
High Growth ◽  
Venture Creation ◽  
Entrepreneurial Ecosystem ◽  
Development Organizations ◽  
Different Types ◽  
Growth Firms ◽  
Development Pipeline ◽  
Pipeline Model

AbstractDespite the emergence of startup accelerators as venture development organizations (VDOs) to high-growth firms, research has yet to identify where these accelerators fit into the venture development ecosystem. By clarifying and reviewing three different subsystems in the entrepreneurial ecosystem, our paper proposes that as an extension of the current incubation mechanism, accelerators contribute to the entrepreneurial ecosystem by transforming entrepreneurs and their ventures at early stages. Drawing upon the Pipeline model (Lichtenstein, G. A., and T. S. Lyons. 2006. “Managing the community's pipeline of entrepreneurs and enterprises: A new way of thinking about business assets.”Economic Development Quarterly20 (4): 377–386.), we first plot where the accelerator model fits in the broader entrepreneurship ecosystem, and then demonstrate how different types of accelerators help participating entrepreneurs and their ventures progress along the venture development pipeline. Our theoretical approach contributes to both the entrepreneurship ecosystem and the accelerator literature and provides a practical map for both policymakers and early-stage entrepreneurs to manage and utilize their entrepreneurship ecosystem more effectively.

Forms of growth: How SMEs combine forms of growth to achieve high growth

2012 ◽  
Vol 18 (1) ◽  
pp. 81-97 ◽  
Author(s):  
Jose Luis Barbero Navarro ◽  
Jose Carlos Casillas ◽  
Bruce Barringer
Keyword(s):  
Growth Rate ◽  
High Growth ◽  
Past Research ◽  
Demographic Variables ◽  
Growth Strategy ◽  
Annual Growth Rate ◽  
Client Retention ◽  
Growth Firms ◽  
Geographical Expansion ◽  
Rates Of Growth

AbstractThe majority of the literature on high-growth firms focuses on two main aspects: growth factors and rates of growth, but little information exists on how SMEs grow. Past research has implicitly considered high-growth firms as a homogeneous category of businesses, however, in reality, they use different forms of growth: domestic and international geographical expansion, the launch of new related and unrelated products, product improvement, client retention and the acquisition of new clients. This work attempts to identify how high-growth SMEs benefit from different combinations of forms of growth to perform successfully. A sample of 89 high-growth SMEs was selected – with an annual growth rate of more than 10% over a 5-year period – and, by means of a cluster analysis, we found four significantly different combinations of forms of growth. To externally test the robustness of those combinations, a group of demographic variables was considered (size, age, sector), as well as a set of variables related to the growth strategy (personnel involvement, the extent to which growth is a priority, perceived growth with respect to competitors), which support the existence of significant differences between the groups.

scholarly journals The Public Policy to Support High Growth Firms: Is a New Ideology of Industrial Policy Born?

2020 ◽  
Vol 14 (1) ◽  
pp. 62-76
Author(s):  
Yu. A. Polunin ◽  
A. Yu. Yudanov
Keyword(s):  
Public Policy ◽  
Industrial Policy ◽  
Innovation Policy ◽  
High Growth ◽  
Policy Support ◽  
Economic Regulation ◽  
Growth Firms ◽  
New Type ◽  
State Programs ◽  
Stimulation Of

The article discusses a new branch of industrial policy — support of high growth firms (HGFs, gazelle firms). Methodologically, the article is the first in Russia analysis of the international literature on the state programs of stimulation of the HGFs. The period, starting with the first publications on this topic in 2005–10 and ending with modern editions, has been covered. The primary purpose of the article was the establishment of the place of the policy of support for the HGFs within the framework of industrial policy, as well as to establish the changes that this new type of policy makes to economic regulation in general. Significant differences between the policy of support for HGFs and public policy on small and medium-sized enterprises, as well as differences from innovation policy, have been revealed. We proved that in the stimulation of the HGFs is particularly acute the generic and, at the same time, the most controversial feature of industrial policy — its selectivity, i.e. targeting specific economic actors, rather than the whole economy.

Creating good public policy to support high-growth firms

2011 ◽  
Vol 40 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Colin Mason ◽  
Ross Brown
Keyword(s):  
Public Policy ◽  
High Growth ◽  
Growth Firms
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