High-Growth Firms and the Future of the American Economy. Kauffman Foundation Research Series

High-Growth Firms and the Future of the American Economy. Kauffman Foundation Research Series
Author: Dane Stangler
Publisher:
Total Pages: 16
Release: 2010
Genre:
ISBN:

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Into early 2010, more than two years after the recession began, the American economy continues to send out mixed signals with respect to economic recovery: GDP (gross domestic product) growth looks set to recover, while unemployment is projected to remain high for many more years. The most important economic matter facing the country is job creation, not only in terms of employment itself but also for boosting sectors such as housing, which will not fully recover until job creation recovers. Discussions about jump-starting the U.S. economy--both from policymakers and pundits--primarily focus on measures that would expand job growth in existing companies. This report, the third in the Kauffman Foundation Research Series on Firm Formation and Economic Growth, draws on a new set of data, a special tabulation conducted by the Census Bureau at the request of the Ewing Marion Kauffman Foundation, calculated from the Business Dynamics Statistics (BDS) database. While previous research has emphasized the importance of new and young companies to job creation overall, this paper focuses on "high-growth firms"--the so-called "gazelles" that, despite their relatively small numbers, nonetheless account for a disproportionate share of job creation. The data generally show that: (1) In any given year, the top-performing 1 percent of firms generate roughly 40 percent of new job creation; and (2) Fast-growing young firms, comprising less than 1 percent of all companies, generate roughly 10 percent of new jobs in any given year. This paper examines the relevance of these points in the national discussion on job creation. When the current conversation turns to small business as an instigator in economic growth, it still emphasizes existing firms. But a new discussion--one that not only promotes entrepreneurship, but, specifically, "high-growth" entrepreneurship--is necessary, because top-performing companies are the most fruitful source of new jobs and offer the economy's best hope for recovery. Finally, this paper recommends strategies policymakers could follow to facilitate the creation and growth of more gazelle companies: (1) Remove barriers that potentially block the emergence of high-growth companies; (2) Focus on taxation, regulation, immigration, access to capital, and academic commercialization; and (3) Target immigrant entrepreneurs and universities, which may be likely sources for high-growth firms. (Contains 7 figures and 23 footnotes.).

High-Growth Firms and the Future of the American Economy

High-Growth Firms and the Future of the American Economy
Author: Dane Stangler
Publisher:
Total Pages: 16
Release: 2014
Genre:
ISBN:

Download High-Growth Firms and the Future of the American Economy Book in PDF, Epub and Kindle

Into early 2010, more than two years after the recession began, the American economy continues to send out mixed signals with respect to economic recovery: GDP growth looks set to recover, while unemployment is projected to remain high for many more years. The most important economic matter facing the country is job creation, not only in terms of employment itself but also for boosting sectors such as housing, which will not fully recover until job creation recovers.Discussions about jump-starting the U.S. economy - both from policymakers and pundits - primarily focus on measures that would expand job growth in existing companies. This report, the third in the Kauffman Foundation Research Series on Firm Formation and Economic Growth, draws on a new set of data, a special tabulation conducted by the Census Bureau at the request of the Ewing Marion Kauffman Foundation, calculated from the Business Dynamics Statistics (BDS) database.While previous research has emphasized the importance of new and young companies to job creation overall, this paper focuses on high-growth firms - the so-called “gazelles” that, despite their relatively small numbers, nonetheless account for a disproportionate share of job creation.The data generally show that: -In any given year, the top-performing 1 percent of young firms generate roughly 40 percent of new job creation. -Fast-growing young firms, comprising less than 1 percent of all companies, generate roughly 10 percent of new jobs in any given year.This paper examines the relevance of these points in the national discussion on job creation. When the current conversation turns to small business as an instigator in economic growth, it still emphasizes existing firms. But a new discussion - one that not only promotes entrepreneurship, but, specifically, high-growth entrepreneurship - is necessary, because top-performing companies are the most fruitful source of new jobs and offer the economy's best hope for recovery.Finally, this paper recommends strategies policymakers could follow to facilitate the creation and growth of more gazelle companies: -Remove barriers that potentially block the emergence of high-growth companies. -Focus on taxation, regulation, immigration, access to capital, and academic commercialization. -Target immigrant entrepreneurs and universities, which may be likely sources for high-growth firms.

Inventive Billion Dollar Firms

Inventive Billion Dollar Firms
Author: Robert E. Litan
Publisher:
Total Pages: 11
Release: 2014
Genre:
ISBN:

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One of the questions or challenges we constantly wrestle with at Kauffman is “how could annual U.S. economic growth be increased by one additional percentage point?” It is not an idle question. If, for example, the economy grew at 4 percent annually rather than 3 percent, GDP would double six years faster (eighteen years versus twenty-four years). Given the magic of compounding, this extra one percent would cumulate over a century to produce roughly three times the level of GDP than would otherwise exist.Such a world would be a far more comfortable one than many of us may be able to imagine. It would mean a dramatically lower level of poverty, while the average American would have a living standard that is three times as comfortable as one that he or she would otherwise enjoy (imagine today, for example, the average family income being roughly $135,000 rather than its current level of about $45,000). A richer society also would have more resources to address the public challenges - upgrading our infrastructure, doing more to clean the environment, and so on - that would make life in America even more comfortable for all our citizens.America's great challenge is to scale the successful ecosystems and to create others to bring about a substantial increase in the numbers of highly successful new companies (whether or not they reach a billion dollars in sales). Nothing less than the future welfare of America and its citizens is at stake.

Financial Determinants of High-Growth Companies

Financial Determinants of High-Growth Companies
Author: Blaž Frešer
Publisher: Springer Nature
Total Pages: 160
Release: 2020-11-13
Genre: Business & Economics
ISBN: 3030593509

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This book explores the factors that contribute to high corporate growth, presenting a new conceptual model for research into this phenomenon. Building on existing research, the authors present a new conceptual research model that links multidimensional variables, such as entrepreneurial orientation, and human capital, with the perceived availability of different forms of financing for high-growth companies and with the measures that these firms take to overcome financial constraints and thus influence their financial performance. With this model the authors aim to enhance our understanding of the specifics of financing high growth companies and demonstrate how the availability of financial resources is one of the most important determinants of promoting development and enterprise growth. Empirically tested on a random sample of high-growth companies from Slovenia, the book seeks to make a contribution to research and enhance our understanding of the various factors involved in high growth firms.

Better Capitalism

Better Capitalism
Author: Robert E. Litan
Publisher: Yale University Press
Total Pages: 361
Release: 2012-09-25
Genre: Business & Economics
ISBN: 0300184697

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In the wake of the Great Recession and America's listless recovery from it, economists, policymakers, and media pundits have argued at length about what has gone wrong with the American capitalist system. Even so, few constructive remedies have emerged. This welcome book cuts through the chatter and offers a detailed, nonideological, and practical blueprint to restore the vigor of the American economy. Better Capitalism extends and significantly expands on the insights of the authors' widely praised previous book, Good Capitalism, Bad Capitalism, co-written with William Baumol. In Better Capitalism, Robert E. Litan and Carl J. Schramm focus on the huge--but often unrecognized--importance of entrepreneurship to overall economic growth. They explain how changes in seemingly unrelated policy arenas--immigration, education, finance, and federal support of university research--can accelerate America's recovery from recession and spur the nation's rate of growth in output while raising living standards. The authors also outline an innovative energy strategy and discuss the potential benefits of government belt-tightening steps. Sounding an optimistic note when gloomy predictions are the norm, Litan and Schramm show that, with wise and informed policymaking, the American entrepreneurial engine can rally and the true potential of the U.S. economy can be unlocked.

Rules for Growth

Rules for Growth
Author:
Publisher:
Total Pages: 494
Release: 2011
Genre: Economic development
ISBN: 9780983177500

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"Looks at the ways in which the legal system, the contents of specific laws, judicial doctrines, and regulation, as well as the legal processes - affects innovation and growth." - preface.

Entrepreneurial Growth

Entrepreneurial Growth
Author: Jerome A. Katz
Publisher: Emerald Group Publishing
Total Pages: 320
Release: 2015-08-04
Genre: Business & Economics
ISBN: 178560046X

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The latest volume of Advances in Entrepreneurship, Firm Emergence and Growth examines many questions regarding growth. What decisions and designs of the entrepreneur lead to growth? Are there differences in what drives high growth entrepreneurship versus slower growth entrepreneurship? Are new firms adopting novel approaches to growth?

The Up Side of Down

The Up Side of Down
Author: Megan McArdle
Publisher: Penguin
Total Pages: 320
Release: 2014-02-11
Genre: Business & Economics
ISBN: 0698151496

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“Clever, surprisingly fast-paced, and enlightening.” —Forbes Most new products fail. So do most businesses. And most of us, if we are honest, have experienced a major setback in our personal or professional lives. So what determines who will bounce back and follow up with a home run? What separates those who keep treading water from those who harness the lessons from their mistakes? One of our most popular business bloggers, Megan McArdle takes insights from emergency room doctors, kindergarten teachers, bankruptcy judges, and venture capitalists to teach us how to reinvent ourselves in the face of failure. The Up Side of Down is a book that just might change the way you lead your life.

The Curve Ahead

The Curve Ahead
Author: Dave Power
Publisher: Palgrave Macmillan
Total Pages: 226
Release: 2014-07-29
Genre: Business & Economics
ISBN: 1137464356

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Why do most growth companies stop growing? And what can their leaders do to overcome the barriers to growth? The Curve Ahead tackles these questions, filling a void in the literature on innovation and growth strategy that has focused on either start-ups or large public companies. Growth companies are different. Their challenge is to transition from entrepreneurial focus to a repeatable process for innovation and sustained growth - and the stakes are high. The Curve Ahead utilizes the power of storytelling to teach growth company leaders how to sustain long-term growth. Using the example of a "gazelle," a high-growth company that is increasing revenue by at least 20% annually for four years or more, this book explores the struggles faced during business growth - something that plagues many businesses. These mid-size companies, typically with annual revenues of $10 million to $100 million, are the engines of economic growth and wealth creation. Tragically, most fall behind the curve before they reach their potential and are sold by investors too ready to throw in the towel. This book doesn't just lay out a fresh approach to innovation and growth strategy. It also helps professionals and business leaders avoid common pitfalls by illustrating the various ways in which growth companies get stuck and flame out. Author Dave Power then tells leaders how to get un-stuck. In addition to a myriad of real-world stories and case studies, each chapter of The Curve Ahead begins with the story of a fictional company called NaviMark. Navimark is emblematic of many growth companies—it faces the same business problems, personal challenges and strategic dilemmas encountered by Power in his 25 years managing, investing in and advising growth companies. Following Navimark throughout the book allows Power to provide a highly complex model of typical struggles and scenarios faced by growth companies and deliver that story to his readers in an extremely edifying, play-by-play manner. The strategy allows readers to follow along—observing, in real time, the way that Navimark evolves, and responds (correctly or incorrectly) to external obstacles and demands. This practical and fast-paced book uses realistic characters, dialogue, and business settings to: • Help readers anticipate the predictable challenges of business model maturity. • Demonstrate proven tools and approaches for overcoming the barriers to growth. • Translate abstract concepts about innovation into actionable programs that can become a part of the rhythm of the business. This book will help thousands of midsized companies overcome the growth hump by providing the tools necessary to not only succeed but thrive in the future. The Curve Ahead provides a roadmap for leaders who want to sustain growth over the long term. This roadmap is based on five premises: 1. Every business model matures, following the familiar S-Curve. 2. You can and must stretch the S-Curve, but that won't work forever. 3. To sustain growth you need to find the next S-Curve 4. Finding your next S-Curve, with some predictability, requires an innovation process, something every company should have in place. 5. Driving innovation while keeping the core business healthy is the responsibility of leaders.

Entrepreneurial Knowledge, Technology and the Transformation of Regions

Entrepreneurial Knowledge, Technology and the Transformation of Regions
Author: Charlie Karlsson
Publisher: Routledge
Total Pages: 351
Release: 2013-06-26
Genre: Business & Economics
ISBN: 1135055904

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In recent years, policy makers have given much credence to the role of entrepreneurship in the transformation of regions. As a result, a new set of policy responses have emerged that focus on the support of new venture creation, small business growth and idea generation and commercialization. While there is a wealth of research about entrepreneurship in general, less attention has been given to the development of new tools and programs in support of entrepreneurial activities, and to the ways in which the emergence, the character and the types of entrepreneurship policies might differ between countries. In particular, the transatlantic perspective is of special interest because of the pioneering role of the United States in this area, and also due to the European Union's focus on economic competitiveness. The contributions included in this book explore the emergence of entrepreneurship policies from a transatlantic comparative perspective and address different aspects of entrepreneurship policies including local entrepreneurship policies and the relationship between knowledge-based industries and entrepreneurship policies.