High Growth Firms A Sensitivity Analysis SWEDEN

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High Growth Firms A Sensitivity AnalysisSWEDEN

• Anita Du Rietz, Ministry of Enterprise, Energy
  and Communication
• Fredrik Andersson, Statistics Sweden

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Definitions

• High Growth firms growth greater than 20 per
  annum, over a three year period, and with 10 or
  more employees .
• Gazelles high growth firms which at are no more
  than 5 years in the beginning of the observation
  period.
• High Growth Firms Gazelles Flyers.

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Measuring high growth Selection
variables

• Two classes of variables
• employment
• a) number of employees
• b) wages/salaries,
• economic performance
• a) turnover sales
• b) value added

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Number of High Growth firms 2002-2005, (10
empl. and 20), in 2002. percentage of each
category
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Number Employees in High Growth firms 02-05,
(10 empl. and 20), in 2002. percentage of
each category
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Selection variable employment or economic
performance?
new employees
Economic performance
Flyer
Gazelles
Time
Time period of study
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Top Industries for gazelles

• NACE
• 74 Other business activities
• Call centre activities - Provision of personnel
  activities - Construction and other engineering
  activities - Business and management consultancy
  activities - Advertising agency activities.
• 72 Computer and related activities
• Other software consultancy and supply -
  Hardware consultancy
• 45 Construction
• 51 Wholesales, trade commission excl. motor
  veh. cycle
• 85 Health and social work
• 52 Retail trade excl motor veh. cycle repair
  h/hold gds.

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Characteristics for high growth firms

• they employ relatively younger people
• they pay lower salaries to their employees
• the young employees have higher education
• key personal have a ph.d. in the age of 30-45
• the employees are to less extent on sick leave

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Age and gender, percentage within each type of
firm 2005.
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Establishments a better unit?

• - The dynamics of firms and enterprises -
• Organic or non-organic growth, i.e., the entering
  point is via split/merge or new
• Establishments are located in different regions
  or in industries
• Regional clusters can be traced

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Establishment a better unit?

• 1.765 establishments are HGE
• 1.091 firms with one establishment HGE
• 445 firms with several establishments that have
  in total 674 HGE
• 129 of 445 firms are HGE in both methods
• 488 establishments are HGE but these 316 firms
  are not HGE
• More than 60 are in sections JK, GI

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Organic or non-organic gazelles
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High growth plants as a percentage share of all
above 5 empl. 2002-2005.
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Sensitivity Analysis Gazelles of all surviving
plants, , 2002-2005, within size classes, growth
rates 10, 20, 30.
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Summary - high growth - Sweden

• Choice of selection variables
• economic performance
• Gazelles ( 15) Flyers (5) All HG (7)
• employment
• Gazelles ( 9) Flyers (3) All HG (4)
• Gazelles employ young, more females, higher
  education, lower salaries

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Summary - high growth - Sweden

• Plants a better unit for employment analyses
• 5 employees, 20 growth
• Gazelles overrepresented in service sectors,
• Flyers in a few sectors
• Sensitivity analysis for gazelle plants
• of all plants with 5,
• 6,2 (10 growth),
• 2,7 (20 growth),
• 1,3 (30 growth)