SMEs' Growth Heterogeneity - Evidence from Regional Developments

Abstract

Previous empirical research on small and medium-sized enterprises (SMEs) frequently struggled with the extreme heterogeneity of these frms. We scrutinise one major source of this heterogeneity: SMEs' growth development. Based on a large dataset of French, Italian, UK and US firms between 2000 and 2008, we find that SMEs fall in two categories in all countries: One large group of firms that display only slow growth and one much smaller group that actively seek strong growth. We show that the growth factors particularly of the slowly-growing firms vary strongly between the countries. European SMEs differ mainly in the growth effects of their ownership structures. US firms set themselves apart via the growth impact of their capital structures. Strongly-growing SMEs, in contrast, develop much more homogeneously in cross-country comparison.

Effect of Regional Economic Development on Small and Medium-Sized Enterprises: Modern Concept of the Dependency

“…Даже в странах с высоким уровнем дохода, со зрелой рыночной экономикой региональные факторы состояния и динамики МСП существенно различаются. Анализ ситуации в регионах Франции, Италии, Великобритании и США, проведенный C. Bannier и S. Zahn, показал, что МСП сильно дифференцированы по двум группам, имеющим собственные факторы роста [58]. Первая из групп -это ограниченное число предприятий, стремящихся к динамичному развитию.…”

Toward Dynamic-Based Classification of SMEs

“…Appropriate targeting of those small businesses with a pro-growth orientation is particularly critical for policymakers in order to apply finite resources effectively (Bridge et al, 1998;Morrison et al, 2003;Peter et al, 2018;Stenholm, 2011). Common size classification, however, of small business cannot effectively identify pro-growth firms, which are heterogeneous in nature (Bannier & Zahn, 2014;Mason & Brown, 2013). Attempts to address sub-groups, such as high-tech entrepreneurships, have proved ineffective because of the high failure rate in this sector as well (Mason & Brown, 2013;Shane, 2008).…”