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A cautionary note on using the Eurostat-OECD definition of high-growth firms
HUI Research, Stockholm, Sweden; Department of Economics, Dalarna University, Borlänge, Sweden.
The Ratio Institute, Stockholm, Sweden; Department of Industrial Economics and Management, The Royal Institute of Technology, Stockholm, Sweden.
HUI Research, Stockholm, Sweden; Department of Economics, Dalarna University, Borlänge, Sweden.ORCID iD: 0000-0002-5610-8526
2012 (English)Report (Refereed)
Abstract [en]

Recent studies have suggested that most firms do not grow, and that a small number of high-growth firms create most new jobs. High-growth firms have therefore attracted an increasing amount of attention from researchers and policymakers. However, there is no uniform definition of what constitutes a high-growth firm in the literature. Eurostat and the Organisation for Economic Co-operation and Development (OECD) recently recommended that highgrowth firms should be defined as firms with at least ten employees in the startyear and annualized employment (or sales) growth exceeding 20% during a 3- year period. This definition would exclude almost 95% of surviving firms in Sweden and about 40% of new private jobs during 2005-2008. We therefore advise caution in using this definition.

Place, publisher, year, edition, pages
Stockholm: HUI Research , 2012. , p. 10
Series
HUI Working Papers ; 65
Keywords [en]
High-growth firms, high-impact firms, gazelles, OECD definition
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-64153OAI: oai:DiVA.org:oru-64153DiVA, id: diva2:1174323
Available from: 2018-01-15 Created: 2018-01-15 Last updated: 2018-01-16Bibliographically approved

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A cautionary note on using the Eurostat-OECD definition of high-growth firms

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf