Acknowledgements We would like to thank the experts who reviewed the exposé and interim draft of this Policy Brief:
3 Executive Summary...4 1 Setting the scene: study background and objectives...8 2 Research concept...
Key definitions The OECD defines high-growth enterprises as firms with average annualised growth in employees or in turnover greater than 20%a year, over a three-year period,
and with ten or more employees at the beginning of the observation period. Gazelles are born newly high-growth enterprises not older than five years.
One group of experts argues that governments should do both, while others favour a policy focused on the most promising SMES.
An annual performance scoreboard of the EU is to include an item 3. 1. 3 High-growth enterprises (with more than 10 employees) as%of all enterprises,
(or by turnover), are enterprises with average annualised growth in employees (or in turnover) greater than 20%a year, over a three-year period,
and with ten or more employees at the beginning of the observation period. 4 A size threshold of ten employees is suggested to avoid the growth of micro enterprises distorting the picture.
but nevertheless have more than 250 employees. Animal metaphors have some popularity in literature about high-growth enterprises there is also the notion of gorillas for companies that grow quickly from small start-ups to large international players in high-technology markets. 7 In fact the notion of large
since the definition of gazelles includes for example new companies that grow from ten to 18 employees within three years reaching a size that does still not make much difference from a regional or national economy point of view.
defined as companies with less than 250 employees. Nota bene, the obvious consequence of high growth of SMES is that they soon turn into large companies.
) INNO-Grips case studies and case briefs Interviews with individual experts Expert survey Secondary data analysis OECD
Three expert interviews were conducted for this Policy Brief: One with OECD economist Jonathan Potter, one with US venture capital and innovation policy advisor Burton Lee,
and questions to non-growing companies about the reasons for not growing (see Annex 2). Guidance by an advisory board Two experts were charged with guiding the research for this Policy Brief,
These experts had agreed to review drafts of this policy brief and contributed to the workshop where the results were discussed.
including issues such as taxation, bankruptcy regulation, rewards for innovative employees, possible income limits, and regulations of sideline income (including equity shares in new companies) of entrepreneurial researchers.
including issues such as recognition for entrepreneurs and innovators, social acceptance of entrepreneurial failure, recognition of innovative and entrepreneurial activities of employees in large companies,
Share of high-growth enterprises (employment definition) in%of enterprises with ten or more employees 0123456789 10 Manufacturing*(2006) Services**(2006)* Mining and quarrying;
***Employer enterprises with fewer than 250 employees. Source: OECD (2009), p. 29. The picture is similar for gazelles.
A comprehensive study by the World Economic Forum provides important insights about growth determinants and strategies of young companies, based on 70 executive cases from 22 different countries and surveys
many experts took a similar view, highlighting that Europe is largely lacking such opportunity-looking entrepreneurial spirit.
As regards impeding market regulation, highly regulated labour markets may be an important barrier for companies to grow. 33 As innovation policy advisor Burton Lee states:
It is so costly to dismiss employees in Europe that entrepreneurs and company managers are extremely cautious about hiring. 34 However,
Sweden and Norway with traditionally highly regulate labour markets, while Austria, a country with a fairly loose labour market regulation, has only an average share of highgrowth companies (see section 3. 2 above).
Since the European culture is said to favour security, the risk of failure may be an important impediment to start
See also Minniti (2008), p. 787, suggesting that in developed countries labour market reforms may be particularly conducive to support the growth of high-performance ventures. 34 Quotation from INNO-Grips Newsletter October 2010
These 691 companies made up 4. 9%of new companies with more than 10 employees in 2006.
Acs and Mueller found that only start-ups with greater than twenty employees have persistent employment effects over time
The Group of Independent Experts concluded that Eurostars should not only be sustained but preferably its budget should be increased in the future.
and industry experts as well as support to find the necessary resources, above all funding and employees. Key elements of support include four workshops:
Each time the Accelerace team, made up of twelve employees, selects 10-15 companies to be supported.
says Accelerace senior management consultant Rebecca Scheel the applying companies need to be at the right development stage
the Accelerace team provides a short-list of candidate firms that have been vetted by at least two business consultants.
The investment committee is made up of several investors, industry experts as well as Symbion's CEO. The initial pitch to enter the programme resembles a typical investor pitch,
while the final pitch includes validated information for customers and industry experts, an actionable operational plan,
It also tracks baseline data for its performance, such as employees, revenue growth and number of customers.
carefully selected independent companies run by internationally proven entrepreneurs and executives.(.The Accelerators are not consultants--they are co-entrepreneurs who invest in the companies they work with to guarantee common goals
and passionate development effort. 72 The Accelerators and other programme participants use their networks to funding sources,
the Executive Training Programme to link talented undergraduates from Singapore universities with growth-oriented SMES;
hiring employees and financing abroad as well as to cooperation in R&d, production and innovation activities with international partners.
Further related findings In a study for the European commission's Sectoral E-business Watch in 2009,42 experts responded to a survey which,
The sectoral focus is a facilitator as it drives to the involvement of stakeholders and experts with sectoral background and reputation.
or failure. 144 The experts consulted for this Policy Brief took different views. At the workshop related to this Policy Brief, Luc Hendrickx, Director for Enterprise Policy and External Relations at the European Association of Craft, Small and Medium-Sized Enterprises (UEAPME), suggested
or the employment level of a country grows if such policies are applied. This means that if the government spends no funds at all on one type of policy,
shifting SME policies towards competitiveness and growth In Korea the SME sector, accounting for 99%of enterprises and 88%of employees, is considered as ensuring sustainable growth for the future.
Furthermore, a new category of mid-sized enterprises with 300 to 1, 000 employees is to be introduced for policy purposes.
SMES account for 99%of all enterprises and 88%of all employers. The traditional Korean policy perception of SMES is that they are need weak
is an enterprise with less than 300 employees and with sales less than 8 billion won (approximately 6. 6 million US dollar).
Whereas the government supports SMES with up to 300 employees with numerous measures, enterprises with more than 300 employees are regarded as large firms under strict government regulation
and cannot receive any support. As a result, many enterprises do not grow. Although the weakness concept is still dominant,
improved support to spin-offs by executives and employees of large enterprises; enabling start-ups at home and expanding the infrastructure for one-person creative enterprises;
000 employees, responding to global competition and developing initiatives to foster hidden global champions. The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean economy dramatically in the coming years.
or the number of employees in order to sustain the status of an SME and be applicable for government support.
and 45 Executive Development Scholarships were awarded. The Business Advisors Programme was created to attach experienced professionals, managers, executives and technicians as business advisors to potential high-growth SMES.
In 2009,93 business advisors were matched with 63 SMES. The Executive Training Programme helps SMES groom the next generation of potential business leaders by linking talented undergraduates from Singapore's universities
with growth-oriented SMES. There were 332 trainees matched to 265 companies in 2009. In mid-2010, close to 30 million Singapore dollars were allocated to the Management Associate Partnership (MAP) Initiative
The CEO, Jayaraman, joined the Asia-Pacific Executive Master of business administration Programme at the National University of Singapore through SPRING's Advanced Management Programme.
In any case, success of Singapore's companies is based on an entrepreneurial environment in the country and a critical mass of qualified technical and managerial manpower.
Gazelles are defined as high growth firms which within a five-year period double in size to a minimum of 20 employees or to 10 million Canadian dollars (CAD) in sales or both.
but by the mid 1970s it switched to high tech SMES with up to 500 employees (mostly under 25 employees).
Another study by the SBA Office of Advocacy found that SBIR firms produced 13 to 14 times more patents per employee than did larger firms.
when compared with a matched set of non-recipient firms. 159 The SBIR is focused on SMES namely over 41%of respondents had 15 or fewer employees,
while about 15%had more than 100, for a mean of only ten employees. As expected very small firms had increased lower sales and employment with the best results for firms in the range of 15 to 25 employees.
Even though they had the data, the review did not assess the presence of high growth firms
Fostering employment of high-tech employees in SMES: the SME Agency introduced for the first time in 2010 a subsidy programme for SMES employing next-generation high-tech human resources.
Funding recipients should have less than 300 employees or capital below JPY 300 million. The majority of schemes target venture companies and SMES.
%or more in each of the previous three years and a size of more than nine employees at the beginning of the period, classifying them as high-growth enterprises as defined by the OECD (see section 2. 1). For 1,
equalling the Eurobarometer findings (see section 3. 2). 28 of these 59 companies had more than ten employees
when excluding micro companies with fewer than ten employees and large companies with more than 250 employees.
Other items with outstandingly high percentages may confirm this interpretation of the data. 83%of the highgrowth companies said that good coaching by external consultants was no reason for growth.
niche market (mentioned twice), word of mouth recommendation, employees, controlling, successful innovation marketing, extended distribution opportunities after being acquired by a trust (mentioned twice), withdrawal of competitors, severe winters. 167 Exhibit 6-1:
100 Favourable development of the business cycle Our company supplies to a growing market Themanagement targeted growth of the company Good coaching by external consultants Unproblematic access to growth finance Successful new
Policies for high-growth innovative SMES v1. 6 84 The findings for high-growth enterprises in total are similar to the findings for high-growth enterprises with 10-250 employees,
Specific items include e g. management change, lack of skilled workers, too low distribution of risk, lack of experience with export markets.
80 90 100 Favourable development of the business cycle Our company supplies to a growing market Themanagement targeted growth of the company Good coaching by external consultants Unproblematic access to growth finance
a) favourable development of the business cycle (b) Our company supplies to a growing market (c) the management targeted growth of the company (d) good coaching by external consultants (e) unproblematic access to growth
and industry experts and we will help you find the resources necessary for your success-no matter
carefully selected independent companies run by internationally proven entrepreneurs and executives. These Accelerators help the best
The Accelerators are not consultants--they are coentrepreneurs who invest in the companies they work with.
Acknowledgements We would like to thank the experts who reviewed the exposé and interim draft of this Policy Brief:
3 Executive Summary...4 1 Setting the scene: study background and objectives...8 2 Research concept...
Key definitions The OECD defines high-growth enterprises as firms with average annualised growth in employees or in turnover greater than 20%a year, over a three-year period,
and with ten or more employees at the beginning of the observation period. Gazelles are born newly high-growth enterprises not older than five years.
One group of experts argues that governments should do both, while others favour a policy focused on the most promising SMES.
An annual performance scoreboard of the EU is to include an item 3. 1. 3 High-growth enterprises (with more than 10 employees) as%of all enterprises,
(or by turnover), are enterprises with average annualised growth in employees (or in turnover) greater than 20%a year, over a three-year period,
and with ten or more employees at the beginning of the observation period. 4 A size threshold of ten employees is suggested to avoid the growth of micro enterprises distorting the picture.
but nevertheless have more than 250 employees. Animal metaphors have some popularity in literature about high-growth enterprises there is also the notion of gorillas for companies that grow quickly from small start-ups to large international players in high-technology markets. 7 In fact the notion of large
since the definition of gazelles includes for example new companies that grow from ten to 18 employees within three years reaching a size that does still not make much difference from a regional or national economy point of view.
defined as companies with less than 250 employees. Nota bene, the obvious consequence of high growth of SMES is that they soon turn into large companies.
) INNO-Grips case studies and case briefs Interviews with individual experts Expert survey Secondary data analysis OECD
Three expert interviews were conducted for this Policy Brief: One with OECD economist Jonathan Potter, one with US venture capital and innovation policy advisor Burton Lee,
and questions to non-growing companies about the reasons for not growing (see Annex 2). Guidance by an advisory board Two experts were charged with guiding the research for this Policy Brief,
These experts had agreed to review drafts of this policy brief and contributed to the workshop where the results were discussed.
including issues such as taxation, bankruptcy regulation, rewards for innovative employees, possible income limits, and regulations of sideline income (including equity shares in new companies) of entrepreneurial researchers.
including issues such as recognition for entrepreneurs and innovators, social acceptance of entrepreneurial failure, recognition of innovative and entrepreneurial activities of employees in large companies,
Share of high-growth enterprises (employment definition) in%of enterprises with ten or more employees 0123456789 10 Manufacturing*(2006) Services**(2006)* Mining and quarrying;
***Employer enterprises with fewer than 250 employees. Source: OECD (2009), p. 29. The picture is similar for gazelles.
A comprehensive study by the World Economic Forum provides important insights about growth determinants and strategies of young companies, based on 70 executive cases from 22 different countries and surveys
many experts took a similar view, highlighting that Europe is largely lacking such opportunity-looking entrepreneurial spirit.
As regards impeding market regulation, highly regulated labour markets may be an important barrier for companies to grow. 33 As innovation policy advisor Burton Lee states:
It is so costly to dismiss employees in Europe that entrepreneurs and company managers are extremely cautious about hiring. 34 However,
Sweden and Norway with traditionally highly regulate labour markets, while Austria, a country with a fairly loose labour market regulation, has only an average share of highgrowth companies (see section 3. 2 above).
Since the European culture is said to favour security, the risk of failure may be an important impediment to start
See also Minniti (2008), p. 787, suggesting that in developed countries labour market reforms may be particularly conducive to support the growth of high-performance ventures. 34 Quotation from INNO-Grips Newsletter October 2010
These 691 companies made up 4. 9%of new companies with more than 10 employees in 2006.
Acs and Mueller found that only start-ups with greater than twenty employees have persistent employment effects over time
The Group of Independent Experts concluded that Eurostars should not only be sustained but preferably its budget should be increased in the future.
and industry experts as well as support to find the necessary resources, above all funding and employees. Key elements of support include four workshops:
Each time the Accelerace team, made up of twelve employees, selects 10-15 companies to be supported.
says Accelerace senior management consultant Rebecca Scheel the applying companies need to be at the right development stage
the Accelerace team provides a short-list of candidate firms that have been vetted by at least two business consultants.
The investment committee is made up of several investors, industry experts as well as Symbion's CEO. The initial pitch to enter the programme resembles a typical investor pitch,
while the final pitch includes validated information for customers and industry experts, an actionable operational plan,
It also tracks baseline data for its performance, such as employees, revenue growth and number of customers.
carefully selected independent companies run by internationally proven entrepreneurs and executives.(.The Accelerators are not consultants--they are co-entrepreneurs who invest in the companies they work with to guarantee common goals
and passionate development effort. 72 The Accelerators and other programme participants use their networks to funding sources,
the Executive Training Programme to link talented undergraduates from Singapore universities with growth-oriented SMES;
hiring employees and financing abroad as well as to cooperation in R&d, production and innovation activities with international partners.
Further related findings In a study for the European commission's Sectoral E-business Watch in 2009,42 experts responded to a survey which,
The sectoral focus is a facilitator as it drives to the involvement of stakeholders and experts with sectoral background and reputation.
or failure. 144 The experts consulted for this Policy Brief took different views. At the workshop related to this Policy Brief, Luc Hendrickx, Director for Enterprise Policy and External Relations at the European Association of Craft, Small and Medium-Sized Enterprises (UEAPME), suggested
or the employment level of a country grows if such policies are applied. This means that if the government spends no funds at all on one type of policy,
shifting SME policies towards competitiveness and growth In Korea the SME sector, accounting for 99%of enterprises and 88%of employees, is considered as ensuring sustainable growth for the future.
Furthermore, a new category of mid-sized enterprises with 300 to 1, 000 employees is to be introduced for policy purposes.
SMES account for 99%of all enterprises and 88%of all employers. The traditional Korean policy perception of SMES is that they are need weak
is an enterprise with less than 300 employees and with sales less than 8 billion won (approximately 6. 6 million US dollar).
Whereas the government supports SMES with up to 300 employees with numerous measures, enterprises with more than 300 employees are regarded as large firms under strict government regulation
and cannot receive any support. As a result, many enterprises do not grow. Although the weakness concept is still dominant,
improved support to spin-offs by executives and employees of large enterprises; enabling start-ups at home and expanding the infrastructure for one-person creative enterprises;
000 employees, responding to global competition and developing initiatives to foster hidden global champions. The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean economy dramatically in the coming years.
or the number of employees in order to sustain the status of an SME and be applicable for government support.
and 45 Executive Development Scholarships were awarded. The Business Advisors Programme was created to attach experienced professionals, managers, executives and technicians as business advisors to potential high-growth SMES.
In 2009,93 business advisors were matched with 63 SMES. The Executive Training Programme helps SMES groom the next generation of potential business leaders by linking talented undergraduates from Singapore's universities
with growth-oriented SMES. There were 332 trainees matched to 265 companies in 2009. In mid-2010, close to 30 million Singapore dollars were allocated to the Management Associate Partnership (MAP) Initiative
The CEO, Jayaraman, joined the Asia-Pacific Executive Master of business administration Programme at the National University of Singapore through SPRING's Advanced Management Programme.
In any case, success of Singapore's companies is based on an entrepreneurial environment in the country and a critical mass of qualified technical and managerial manpower.
Gazelles are defined as high growth firms which within a five-year period double in size to a minimum of 20 employees or to 10 million Canadian dollars (CAD) in sales or both.
but by the mid 1970s it switched to high tech SMES with up to 500 employees (mostly under 25 employees).
Another study by the SBA Office of Advocacy found that SBIR firms produced 13 to 14 times more patents per employee than did larger firms.
when compared with a matched set of non-recipient firms. 159 The SBIR is focused on SMES namely over 41%of respondents had 15 or fewer employees,
while about 15%had more than 100, for a mean of only ten employees. As expected very small firms had increased lower sales and employment with the best results for firms in the range of 15 to 25 employees.
Even though they had the data, the review did not assess the presence of high growth firms
Fostering employment of high-tech employees in SMES: the SME Agency introduced for the first time in 2010 a subsidy programme for SMES employing next-generation high-tech human resources.
Funding recipients should have less than 300 employees or capital below JPY 300 million. The majority of schemes target venture companies and SMES.
%or more in each of the previous three years and a size of more than nine employees at the beginning of the period, classifying them as high-growth enterprises as defined by the OECD (see section 2. 1). For 1,
equalling the Eurobarometer findings (see section 3. 2). 28 of these 59 companies had more than ten employees
when excluding micro companies with fewer than ten employees and large companies with more than 250 employees.
Other items with outstandingly high percentages may confirm this interpretation of the data. 83%of the highgrowth companies said that good coaching by external consultants was no reason for growth.
niche market (mentioned twice), word of mouth recommendation, employees, controlling, successful innovation marketing, extended distribution opportunities after being acquired by a trust (mentioned twice), withdrawal of competitors, severe winters. 167 Exhibit 6-1:
100 Favourable development of the business cycle Our company supplies to a growing market Themanagement targeted growth of the company Good coaching by external consultants Unproblematic access to growth finance Successful new
Policies for high-growth innovative SMES v1. 6 84 The findings for high-growth enterprises in total are similar to the findings for high-growth enterprises with 10-250 employees,
Specific items include e g. management change, lack of skilled workers, too low distribution of risk, lack of experience with export markets.
80 90 100 Favourable development of the business cycle Our company supplies to a growing market Themanagement targeted growth of the company Good coaching by external consultants Unproblematic access to growth finance
a) favourable development of the business cycle (b) Our company supplies to a growing market (c) the management targeted growth of the company (d) good coaching by external consultants (e) unproblematic access to growth
and industry experts and we will help you find the resources necessary for your success-no matter
carefully selected independent companies run by internationally proven entrepreneurs and executives. These Accelerators help the best
The Accelerators are not consultants--they are coentrepreneurs who invest in the companies they work with.
'This'offers'new'possibilities'for'public'employees'to'coqcreate'a'working'environment'that'is'compatible'with'their'work/life'balance'aspirations.'
'It'is'also'affects'the'attractiveness'of'the'public'sector'as'an'employer.''In'our'research,'we'also'paid'attention'to'followers,'late'adopters'and'laggards,
'In'this'sense,'the'skepticism'of'single'employees'is'also'a'barrier.''For'example,'in'the'Slovak'context,'this'has'been attributed'to'the'bureaucratic'attitude'inherited'from'the'communist'regime,'characterized'by'a'strong'aversion'to'change'and'innovation.'
employees'!'preferences! in! the! use! of! ecprocurement.''''Connected'to'this,'the'support'of'managers'in'arranging'training
'The'eventual'achievement'is'the'increase'of'both'employees''ICT'skills'and,'more'importantly,'the'change'of'organizational'cultures.'
'The'latter'is implemented'through'decentralized'negotiations'between'employers'and'unions'at'the'organizational'level.''Yet,'the'legislation'has'to,
employers,!, employees! and! teleworkers.!Within! this! general! framework! telework! relationships! can! be! then! arranged! in!
autonomy! within! public! sector! organizations! at! the! local! level.!''4 European Framework Agreement on Telework, cf. http://goo. gl/Cyisfq.
employees'!'particular! needs,!, while! also! making! clear! arrangements! with! respect! to! the! time! that! has!
employers'!'premises.''''Last,'interqinstitutional'dynamics'(e g.''topqdown'pressures'and'positive'imitation)' are'influential'for'upscaling'telework'in'the'case'of'followers,'late (adopters,'laggards'and'non>adopters.'
'According'to'a'grassroots'dynamic,'committed'employees'generally'design'telework'projects'in'autonomy, 'then'promoting'it'to'the'top'management,
''Top'management's'decision'whether'to'consent'employees'to'telework 'or'not'is'necessary,'of'course.'
employees! for! experimental! telework! and! providing! the! necessary! support! through! top! management's! guidance.!''European) Policy) Brief)#)5)))8!
employees! through! pilot projects;!this! may! attenuate! their! perception! of! risk.''5 8! Policy! recommendations! for!
for'modifying'governance'traditions'and'employees''preferences'in'the'use'of'eqprocurement.''7. Identify'a'pivotal!
'This'implies'the'establishment'of'clear'rules,'rights'and'duties'for'employers,'employees'and'teleworkers.'
'Organizations'can'then'discuss'the'most'appropriate'solution'in'light'of'employees''particular'needs, 'while'also'making'clear'arrangements'with respect to'the'time'that'has'to'be spent'at'the'employers''premises.'
'4. Disseminate'the'existent'best! practices'to'encourage'public'sector'organizations''willingness'to'imitate'other'cases;'
among'employees'for'the'implementation'of'telework'experiments 'and'provide'the'necessary'support'through'top'management's'guidance.!
'8. Highlight'the'diffused'benefits'achievable'for'both'managers'and'employees'through'the'experimentation! of!
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