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Flashcards in The importance of fast growth Deck (14)
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1
Q

Define a gazelle

A

A business with growth rates of over 20% and more than 10 employees

2
Q

List 4 facts of growth

A

Growth increases survival, fast growth is uncommon, fast growth is spotty, smaller/younger businesses grow faster

3
Q

What did Delmar et al (2013) find?

A

1% increase in size = 12% decrease in probability of exit

4
Q

What is spotty growth?

A

Where growth rates change drastically from period to period

5
Q

Why is fast growth uncommon?

A

Because most business decrease in size rather than increase (study on NZ firms)

6
Q

What does Gibrat’s law state?

A

Growth is independent of size

7
Q

Does Gibrat’s law hold true for smaller businesses?

A

No

8
Q

What did Dunne and Hughes (1994) find?

A

Business age is negatively correlated to growth rates

9
Q

List three benefits of fast growth

A

Macro economy (Microsoft and google = 13% US GDP in 90’s), regional economies and job generation

10
Q

List some examples of fast growing firms in the 1990’s USA

A

Microsoft, Google

11
Q

What does MUPPEts stand for

A

Marginal Undersized Poor Performance Enterprises

12
Q

Who usually sets up muppets?

A

People of lower economic standing

13
Q

According to Jarillo (1989), what type of resource (and how much more of it) is used by fast growing firms?

A

External resources (64% more than average use of them)

14
Q

How does the use of external resources aid growth?

A

Allows the business to pursue opportunities that they wouldn’t have usually been able to do with their own internal, resources and capabilities.