A taxonomy of the early growth of Belgian start‐ups

Diambeidou, Mahamadou Biga; Gailly, Benoît

doi:10.1108/14626001111127034

Cited by 21 publications

(7 citation statements)

References 78 publications

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“…The most notable is Garnsey et al ( 2006 ) whose motivation is similar to ours: “Little evidence is available on the growth paths of firms over time.” Garnsey et al ( 2006 , p. 9). Little seems to have changed since 2006 because although Garnsey et alis widely cited (considerably more than 100 times) very few of the citations actually look at growth trajectories (for four studies which do deploy similar methods to longitudinal trajectory data see Diambeidou and Gailly ( 2011 ), Hamilton ( 2012 ), Coad et al ( 2013 ) and Brenner and Schimke ( 2014 )). What most immediately distinguishes our study from Garnsey et alis the scale of the data, their study covers about 400 firms drawn from three countries (UK, Germany and the Netherlands) over periods (in some case) up to age 10.…”

Section: The Literature and Methodsmentioning

confidence: 99%

All grown up? The fate after 15 years of a quarter of a million UK firms born in 1998

Anyadike-Danes

Hart

2018

J Evol Econ

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The theory of firm growth is in a rather unsatisfactory state. However, the analysis of large firm-level datasets which have become available in recent years allows us to begin building an evidence base which can, in turn, be used to underpin the development of more satisfactory theory. Here we study the 239 thousand UK private sector firms born in 1998 over their first 15 years of life. A first, and quite striking, finding is the extraordinary force of mortality. By age 15, 90% of the UK firms born in 1998 are dead, and, for those surviving to age 15, the hazard of death is still about 10% a year. The chance of death is related to the size and growth of firms in an interesting way. Whilst the hazard rate after 15 years is largely independent of size at birth, it is strongly affected by the current (age 14) size. In particular, firms with more than five employees are half as likely to die in the next year as firms with less than five employees. A second important finding is that most firms, even those which survive to age 15, do not grow very much. By age 15 more than half the 26,000 survivors still have less than five jobs. In other words, the growth paths – what we call the ‘growth trajectories’ – of most of the 26,000 survivors are pretty flat. However, of the firms that do grow, firms born smaller grow faster than those born larger. Another striking finding is that growth is heavily concentrated in the first five years. Whilst growth does continue, even up to age 15, each year after age five it involves only a relatively small proportion of firms. Finally, there are two groups of survivors which contribute importantly to job creation. Some are those born relatively large (with more than 20 jobs) although their growth rate is quite modest. More striking though, is a very small group of firms born very small with less than five jobs (about 5% of all survivors) which contribute a substantial proportion (more than one third) of the jobs added to the cohort total by age 15.

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Section: The Literature and Methodsmentioning

confidence: 99%

All grown up? The fate after 15 years of a quarter of a million UK firms born in 1998

Anyadike-Danes

Hart

2018

J Evol Econ

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“…NTBFs can represent not only a large potential pool of jobs but also a source of economic growth (Aaboen et al. , 2006; Chanut-Guieu and Tannery, 2009; Heirman and Clarysse, 2004; Saty Kouame, 2012) and innovation dissemination (Biga Diambeidou and Gailly, 2011; Cassar, 2004; Festel, 2011), which is why it seems crucial to better understand their growth trajectories.…”

Section: Introductionmentioning

confidence: 99%

The centrality of organisational factors in the growth of new technology-based firms

Tarillon

2022

JSBED

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PurposeNew technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs.Design/methodology/approachThe authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity.FindingsThe model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors – such as the level of innovation and the governance structure – that explain initiation of a growth trajectory and the intensity of the growth.Originality/valueBy using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.

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“…Although these models differ regarding the number of stages and in the description of these stages, it is observed that most of them are more concerned with understanding the growth of existing companies with consolidated operations (Garnsey, 1998) to the detriment of new companies. Consequently, there is little research that has sought to understand the phenomenon of organizational development in its early stages (Churchill and Lewis, 1983; Kazanjian, 1988; Machado-da-Silva et al ., 1998), often elaborated in an overly simplified way (Diambeidou and Gailly, 2011).…”

Section: Introductionmentioning

confidence: 99%

Life cycle analysis of Brazilian startups: characteristics, intellectual capital, agents and associated risks

Couto

Oliva

Giudice

et al. 2021

JIC

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PurposeThe purpose of this paper was to present the stages of the Brazilian startups' organizational life cycle (OLC), identifying and describing the main factors related to the entrepreneurial and organizational perspectives, as well as the factors related to external relationship agents and the associated risks at each OLC stage. In addition, the variables that comprised the three perspectives above were used for a descriptive reading of the evolutionary process from the perspective of intellectual capital during the stages.Design/methodology/approachThe type of research used was quantitative with a descriptive character. For data collection, the authors have used the survey method and two complementary questionnaires were used as research tools. The measurement scale used in these instruments was the 11-point Likert scale. In total, 100 Brazilian startups registered in the STARTUPBASE and residents in São Paulo comprised the sample of this research. For the data processing, it was used the exploratory factor analysis techniques, to identify the analysis factors, and the cluster analysis, to identify the OLC stages.FindingsBased on the results obtained, four stages were identified and described to build the OLC model of this research: Stage I – conception and development; Stage II – organization and traction; Stage III – growth and scale; and Stage IV – consolidation and transition. In addition, the authors described the main lines of evidence found at each stage.Practical implicationsThis research contributes to academic studies of the OLC in startups and the evolution of risks that originate from the relationship between external agents in the business environment and startups. Thus, a management map is built, which helps entrepreneurs and managers construct these businesses since such a management map allows identifying the risks and challenges that a startup needs to overcome to grow and develop.Originality/valueThe originality of this research lies in the adaptation of the OLC approach, which is widely used in studies analyzing the growth and development of mature organizations. The authors used this adaptation to analyze the growth and development of startups in Brazil. In addition, the identification and analysis of external agents that make up the business environment, as well as the analysis of the risks, originated from the relationships between the startup and these agents, brought original and essential results and discussions, both for OLC studies and for risk analysis studies in startups.

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A taxonomy of the early growth of Belgian start‐ups

Cited by 21 publications

References 78 publications

All grown up? The fate after 15 years of a quarter of a million UK firms born in 1998

All grown up? The fate after 15 years of a quarter of a million UK firms born in 1998

The centrality of organisational factors in the growth of new technology-based firms

Life cycle analysis of Brazilian startups: characteristics, intellectual capital, agents and associated risks

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