Frontiers of Entrepreneurship Research
1996 Edition


GOVERNMENT PROGRAMS AND HIGH GROWTH NEW FIRMS

Sammis B. White, University of Wisconsin-Milwaukee
Paul D. Reynolds, Babson College



Introduction

Method and Data

Survival

Differences Among Surviving Firms Government Contributions to Growth

Conclusion References

ABSTRACT

It is widely recognized that new firms with high growth trajectories are major sources of additional sales, jobs, and out-of-region exports. Because of this impact both nascent entrepreneurs and most governments have a strong interest in discovering what the ingredients are for high growth trajectories. In this paper we explore what dimensions of start-up teams and new businesses are related to several definitions of high growth trajectories. We examine some 35 factors which may be related to the goals of survival, high, compound, annual rates of sales growth, high initial sales levels, and consistent growth in sales. We conclude that we have discovered no factors which are related to all four goals, even though several are related to each individually. Those which we found related may marginally help entrepreneurs reach specific goals, but inherent characteristics of the entrepreneurs themselves and factors such as timing are likely to have a greater impact.

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1997 Babson College All Rights Reserved
Last Updated 4/1/97 by Cheryl Ann Lopez

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