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• W778818250 abstract "ABSTRACTThe purpose of this paper is to shed some light on the determinants of rapid growth of firm start-ups. We consider both firm external and internal perspectives in a multilevel framework, and empirically test notions advocated by the theory of the firm, industrial economics, and economic geography. Our findings suggest that new venture growth is associated to early internationalization and the learning process of firms that are born small and grow fast. Contesting RBV premises, industry productivity growth and location economies seem to be a favorable environment for those firms that struggle to surmount the growth barriers they face.Key words: Firm growth, early internationalization, productivity growth, external economies.(ProQuest: ... denotes formulae omitted.)INTRODUCTIONAn increasing number of scholars and policy makers hold that the entrepreneurial ecosystem of a region plays a fundamental role for economic growth. Not only new and young firms constitute an important source of new jobs at the meso (or macro) level (Acs & Mueller, 2008; Stam, Suddle, Hessels, & Stel, 2008), but also, they transform innovative ideas into real business projects at the micro level (Acs, Braunerhjelm, Audretsch, & Carlsson, 2009). Nearly all net job creation in the United States between 1980 and 2005 occurred in firms less than five years old and, even without startups, an analysis for 2007 shows that young firms (defined as one to five years old) still account for roughly two-thirds of job creation (Stangler & Litan, 2009). Regions like Silicon Valley in the USA or Cambridge in UK suggest that an appropriate entrepreneurial ecosystem embedded in a territory seems to be crucial to nurture rapidly growing ventures (Bresnahan, Gambardella, & Saxenian, 2001). Reversely, although most firms do not grow much after start-up (Headd & Kirchhoff, 2009), the formation of high growth innovative ventures is a sine qua non condition to boost a competitive region (Acs & Mueller, 2008; Stam, Suddle, Hesseis, & Stel, 2008). Are the firm-internal distinctive competences of a young organization what determine venture grow? Is it rather the local environment what matters? Or perhaps a combination of both, and if so, what is the weight of each? These questions remain still unanswered in the entrepreneurship literature. A study on the nexus of the micro-level (that is, individual start-up firm level) and meso-level (that is, entrepreneurial ecosystem level) of analysis of entrepreneurship, becomes necessary to better understand the development and evolution of an endogenous mechanism which allows for rapid venture growth and regional economic growth (Braunerhjelm, Acs, Audretsch, & Carlsson, 2010).Conventional wisdom suggests that in the new century the largest portion of new jobs in developed economies is generated by a small number of rapidly growing firms, frequently young and small size ventures, often known as 'gazelles' (Henrekson & Johansson, 2009). Despite the unquestionable economic impact of rapidly growing young ventures, little is known on the factors driving their rapid growth path. Our conjecture is that factors describing both micro and meso levels of analysis matter for surmounting growth barriers faced by young ventures.More studies are needed to gain a better understanding on the success factors that determine the fast growth path of young ventures. We contribute to the field of high growth entrepreneurship in three ways. First, industrial economists have widely analyzed the effect of entry barriers and survival barriers on venture performance. To our knowledge, little attention has been paid to the study of obstacles growth barriers) faced by entrepreneurs in their attempt to achieve rapidly high growth for their start-up businesses. Secondly, most studies examine separately either firm external factors (environmental perspective) or firm internal factors (organizational view), offering in most instances a partial view of the venture high growth phenomenon. …" @default.
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• W778818250 date "2012-10-01" @default.
• W778818250 modified "2023-09-26" @default.
• W778818250 title "Young Ventures, Internationalization and Barriers to Growth" @default.
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