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The purpose of this paper is to arrive at high-growth firm (HGF) and predict the growth of rapid-growth firms using the set of balance-sheet ratios.

The source of data came from the AIDA database, a commercial database provided by Bureau van Dijk. A total of 45,000 family business small- and medium-scale enterprises of Italy were selected for the study. Liquidity ratio, solvency ratio, firm age, cash flow, and working capital are considered as predictors of the firm growth. Probit regression is used for predicting the growth of the firms.

The result of the study indicated that the most important financial indicators were the liquidity ratio, solvency ratio, firm age, cash flow, and working capital are most important predictors of firm growth. The ROC of the model is 70.78, which shows that the model is fair.

The present study considers an innovative approach that considers balance sheet issued the year prior to the observation of rapid growth as predictors of firm growth (similar to the credit-scoring models, i.e. the Z-score model, to measure the probability of default).

The purpose of this paper is to study the firm-level financial variables affecting the growth of small and medium-sized enterprises (SMEs).

The study applies a resource-based view to analyze the firm-level as well as industry-level determinants of SME growth. Empirical evidence has also been provided from a data set of SMEs in Sweden to support the hypotheses. For a robust statistical analysis, three models – ordinary least squares (OLS) regression, random-effects regression and fixed-effects regression – are used to examine the influence of explanatory variables on growth.

The findings of this study show a positive and significant influence of profitability, short-term debt and size on a firm’s growth across all three models. Results regarding the influence of long-term debt on growth, however, are mixed. While the results of a fixed-effect model show the negative and significant influence of long-term debt on growth, the results according to OLS and random effects show long-term debt positively related to growth.

This study has been conducted over a period of four years and in the context of Sweden which may limit the generalizability of its results for longer periods and for different contexts. Moreover, the low explanatory power of the models implies the need to also consider other types of variables, such as managerial or socio-economic variables, to better explain the determinants of SME growth.

Understanding the determinants of growth can be important for policy makers, SME managers and financial institutions. The findings of this study can be used for designing policies which stimulate SME growth. Realizing the financial resources that influence growth can also help SME managers and financial institutions to understand each other’s need for better cooperation.

This paper applies different models for analyzing large and cross-sectoral data regarding SME growth in the context of Sweden.

This paper aims to contribute to the understanding of the motives of individuals in Tanzania to start their own businesses on the one hand and the growth of their firms on the other hand.

A survey method was used to gather data from 300 small business owners and managers located in selected cities in Tanzania. Multiple regression analysis was conducted to analyse the relationship between the motivation to start an own business on the one hand and firm growth on the other hand. Three indicators for growth, namely, employment, sales and assets, were used to measure growth.

The results suggest that that pull factors are more important to start the businesses than push factors. This contradicts the common opinion and previous research that push factors are more important than pull factors in developing countries. Furthermore, the study found that pull factors are positively related to firm, whereas push factors are negatively related to firm growth.

It should be noted that while this paper makes a number of contributions, there are some limitations that should be considered when interpreting the results. For instance, the data for this study were collected from only one type of business, i.e. the furniture industry (in Tanzania). Accordingly, we do not know the applicability of these findings to other businesses in other sectors. Therefore, future research should include businesses in other sectors to ascertain if the present findings are specific to the furniture business only or are applicable to other businesses as well.

Our findings indicate that there are differences in motivations among owner-managers in starting the business and subsequent firm performance. Therefore, individuals need different forms of support depending on the level of development of their business, as well as their motivation. For example, we have seen that the presence of role models has a significant effect on business growth. Therefore, the government might consider using the media and other mechanisms to feature stories about successful entrepreneurs.

The authors extend the findings of previous studies that investigate the owner-manager motives and small and medium-sized enterprises (SMEs) growth in developed economy settings, but neglected emerging economies. The study also contradicts the common opinion and previous research that push factors are more important than pull factors in developing countries.

The purpose of this paper is to examine how network competence is related to the growth of domestic and international SMEs originating from the Nordic region. Business networks have been found to drive internationalization of SMEs in the Nordic context, but the impact of network-related organizational competencies on them has not been considered.

The authors apply regression analysis on a sample of 298 Finnish SMEs across five industry sectors, gathered via an online survey in 2008, and with the data having been updated for its financial indicators up to 2010.

The authors find that cross-relational network competence is a significant predictor of growth in internationally operating SMEs. This result is robust across measures among the firms. In comparison, the network competence of domestically operating SMEs is not related to their growth, and relationship-specific competence does not influence growth.

The study does not account for longitudinal aspect of competence development. Growth is measured by the growth in sales and assets, and there are other ways to measure organizational growth. A single-country context also extends some restrictions on the generalizability of the results, although they could be expected to hold across small, open economies similar to Finland and the Nordic area.

The results imply that the strategic aims of SMEs determine their need for network competence, those SMEs seeking internationalization and growth through geographic expansion come to benefit from developing certain types of network competence.

Policy implications arise where governments in Finland and in the Nordic area may aid SMEs’ internationalization efforts by enabling the growth-seeking firms with increased resources for competence development.

This is the first study to examine how the organizational competencies to develop and manage business networks, in particular dyadic and network-level competencies, come to determine realized growth outcomes in domestic and international SMEs. It contributes to the theory of SME internationalization and international entrepreneurship from the business network point of view, while providing further knowledge on internationalization of SMEs originating from the Nordic area.

The purpose of this paper is to investigate the implications of causation and effectuation behaviour of Ethiopian entrepreneurs on the eventual performance of their newly established small firms. It adds new knowledge and insights to advance the theory of effectuation by extending its scope into the domain of entrepreneurial behaviour and firm performance and by testing one of the operationalized scales in an African context.

This empirical research is conducted amongst Ethiopian tour operators (n=118) based on primary data from the field. The scales are based on Chandler et al. (2011), which are adapted to fit to the tourism sector and validated in an African context using a two-stage exploratory factor analysis (EFA). Hierarchical multiple regression is used to assess the ability of entrepreneurs’ behaviour (i.e. causation and effectuation) at the startup phase to predict the eventual performance of their newly established firms (self-reported changes in employment size, sales, profit and assets) over three years (January 2012-2015).

The findings reveal a varied effect of causation and effectuation on financial and non-financial measures. Causation is positively related to an increase in employment size, whereas the overall effect of effectuation is positively related to financial performance measures, although its dimensions vary in their effects on sales, profit and assets increase. The paper concludes that causation and effectuation have varied implications on firm performance. In other words, unlike the findings of other research in Western contexts, a strong empirical support is not found to claim that effectuation is superior to causation in outcomes such as firm performance in Ethiopian context.

While this paper provides a new data set for entrepreneurship literature, its findings may lack generalisability. Not only it is industry specific (tourism sector), but also it is conducted in a single African country (Ethiopia). Despite its limitations, the paper adds new knowledge and insights for empirical studies in entrepreneurship field on the effects of entrepreneurs’ behaviour, such as causation and effectuation; on firm performance. Future research should focus on other economic sectors and in different African countries before making generalisations about the effect of causation and effectuation behaviour of African entrepreneurs on firm performance.

The findings of this paper can be used in other hospitality and tourism sectors like hotels and souvenir shops since tour operating business includes a broad range of service activities such as sightseeing, accommodation, transportation, recreational activities and shopping. Besides, these results have practical implications to prepare and provide business and management training tools to enhance entrepreneurial and managerial skills of owners of small tourism firms in Ethiopia. The findings of the study can also be applied in other African countries with similar culture and business environments to promote tourism development and success in Africa.

There have been hardly any empirical studies that are undertaken on the implications of entrepreneurial behaviour such as causation and effectuation on the performance of small tourism firms, particularly in an African context. The paper addresses this research gap in entrepreneurship literature in drawing on empirical evidence from small tourism firms (tour operators) in Ethiopia.

This study investigates the impact of the CEO's financial literacy on family SMEs' growth, as well as the moderating role of the generational stage on this relationship.

The study is based on survey data of Spanish private family firms and utilizes a second source of data, the SABI database by Bureau Van Dijk. The authors run ordinary least squares regressions and use both the base and the partition approaches to test the hypotheses.

The analysis reveals a positive association between the CEO's financial literacy and firm growth. However, this relationship is not uniform across generations. The CEO's financial literacy-firm growth relationship becomes weaker for first- and third or subsequent-generation family firms while becoming stronger for second-generation family firms.

This study adds the financial literacy of the CEO as a novel individual-level determinant of family firm growth. It also shows that CEOs do not always use their financial literacy to its full potential to foster growth. More specifically, the extent to which financial literacy leads to firm growth is found to be conditional on the generational stage of the family SME. The obtained findings are valuable for family SMEs intending to hire a new CEO, encouraging the financial literacy of the current CEO and educating the next generation of family members.

The high-growth potential has long been the dominant view on RBSUs among researchers and policy makers. Several researchers indicate that RBSUs, once they have reached a certain critical mass, exhibit faster average employment growth rates than non-high-tech starters (Mustar, 1995; Licht & Nerlinger, 1998; Storey & Tether, 1998; Delapierre, Madeuf, & Savoy, 1998; Autio & Parhankangas, 1998). However, in recent years several researchers showed that the idea of fast growth does not hold for most RBSUs. Rickne and Jacobsson (1999) found that the vast majority of new technology-based firms (NTBFs) remained very small. Also Autio and Yli-Renko (1998) reported that most NTBFs in Finland did not grow at all. Similar findings were reported in France (Mustar, 1997), Italy (Chiesa & Piccaluga, 2000) and in Cambridge, UK (Segal Quince Wicksteed, 2000). Delappiere et al. (1998) further argue that high-tech firms that concentrate on R&D and work primarily as research subcontractors for large groups show little employment growth. In contrast, firms that deal with turning technology into new uses tend to grow and create employment as they develop their manufacturing and marketing capabilities. Clearly, there is still much discussion and uncertainty regarding the growth potential of RBSUs.

High-growth firms have recently received considerable attention in the firm growth literature. These firms might have grown despite the existence of growth barriers, and evidence also suggests that, having already grown exponentially, they may not be in the best position to grow further. Policies targeting high-growth firms may therefore be misdirected. We argue that entrepreneurship researchers should concentrate more on firms that are not hiring, despite having high profits. We call these firms “sleeping gazelles,” and demonstrate that they represented almost 10% of all limited liability firms in Sweden from 1997 to 2010. Nearly half of these firms continued to earn high or moderate profits in subsequent three-year periods, while still displaying no growth. Regression analyses indicate that these firms were significantly smaller, older, more likely to be active in industries with high profit uncertainty, and more likely to be located in less densely populated municipalities than were corresponding growing firms.

This paper aims to examine the growth rates of small- and medium-sized enterprises (SMEs) over a three-year period, the relationship between firm size and firm growth in the context of SMEs, and the effect of marketing capability (MC) on firm growth and how it relates to firm size. The theoretical framework is based on the resource-based view and dynamic capabilities.

Data were gathered from Finnish SMEs (n = 214) and analyzed with Latent growth curve modeling (structural equation modeling). Respondents were chief executive officers or company owners.

Results show that firm size is unrelated to the rate of change, and MC has a significant effect on both the intercept and slope parameters. Smaller SMEs have less MC than larger SMEs.

While the overall human resources level of the SME is not linked to the rate of growth, MC is. This is an important point for small business growth studies, for it shows what type of personnel is called for during rapid growth. SMEs could advance significantly and rapidly if they invest in versatile human capital, especially in the marketing area.

Majority of the MC research involves larger corporations. This study brings new insights from SME perspective. In addition, this study suggests that it is imperative to consider different types of growth separately. This study contributes to this need by demonstrating the connection between employee growth rate and MC in SMEs.

The current research investigates the regional differences in benefiting from innovation toward growth ambitions in a sample of female entrepreneurs in the Middle East and North Africa (MENA) and Nordic region. A sample of 4,048 early-stage female entrepreneurs from these two regions who were participated in annual surveys of Global Entrepreneurship Monitor was selected for further analysis. The results of data analysis using hierarchical linear modeling (mixed models) revealed that innovation benefits growth ambitions of early-stage female entrepreneurs. Further, the regional differences affect the benefit of innovation in shaping growth ambitions, so that, in Nordic region, the early-stage female entrepreneurs expect more growth out of their innovation as compared with their counterparts in MENA region. These results have been discussed regarding to existing literature, and future research directions have been suggested based on the results.