Oxfordstr. 2 53111 Bonn, Germany innogrips-contact@proinno-europe. eu European commission Directorate-General Enterprise and Industry D/1"Policy Development for Industrial
growing enterprises as they are seen as a key driver of economic growth and employment. Europe has performed relatively badly in generating high-growth innovative companies that quickly become global leaders.
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,
Gazelles are born newly high-growth enterprises not older than five years. These definitions have become prevalent in publications on this issue.
%A recent study found that the share of young enterprises among large innovative companies was much larger in the US
and growing enterprises may also produce negative externalities. State failure theory deals with possible failures in governmental decisions and policy making.
and related policies The answer to the question why enterprises grow is complex. Many factors can trigger enterprise growth and, vice versa,
possible barriers to growth are manifold. In recent years, research has substantiated widely the importance of high-growth new companies for job creation.
The number and share of high-growth enterprises is small, but the number and share of jobs they create is disproportionally large.
However, the number of studies about policies to support high-growth enterprises is still small.
However, the benefit of participating in platforms such as the Enterprise Europe Network (EEN) may not be tangible enough for SMES,
Section 5. 5.)Findings from the IW Future Panel According to the IW Future Panel, a survey of several thousand German enterprises,
The most important reasons for non-growth stated by non-high-growth enterprises were an unfavourable development of the business cycle and strong competition.
it appears to be worthwhile to support high growth of enterprises in order to leverage the positive impact of these enterprises.
Since high-growth enterprises can be found in any industry and since business ecosystems, which are important for companies'sustainability and growth,
This may include further work towards single markets in Europe as well as enhancing the European commission's Enterprise Europe Network.
and around the world to foster fast growing enterprises sometimes labelled gazelles or, when having reached considerable size,
gorillas. 1 These enterprises are seen as important drivers of economic growth, employment and social wellbeing. There is also an increased interest of policy makers in fostering innovation,
Therefore Europe is eager to find effective ways to promote high-growth enterprises. In particular, Europe seeks to strengthen growth of enterprises that are yet small
or medium-sized but possess high potential to grow fast in order to become the Googles, Microsofts or Amazons of tomorrow.
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,
It suggests answers to these questions based on evidence from literature analysis, case studies, an enterprise survey and expert interviews.
Chapter 6 summarises findings about reasons for growth and non-growth from an enterprise survey.
Policies for high-growth innovative SMES v1. 6 10 2 Research concept 2. 1 Definitions of key terms Type of enterprises focused in this study This Policy
which defines high growth enterprises as follows: Highgrowth enterprises, as measured by employment (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.
Excluded from this definition are companies that were born three years ago or less which are nevertheless relevant here
because they may quickly surpass the formal thresholds as well as companies that underwent a merger or takeover.
i e. enterprising human action in pursuit of the generation of value through the creation or expansion of economic activity. 5 A certain share of high-growth enterprises are defined so-called gazelles
as high-growth enterprises born five years or less before the end of the three-year observation period. 6 This means that this Brief also deals with gazelles,
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
this Brief does not consider just any high-growth enterprises, but only innovative high-growth enterprises.
This focus can be justified with empirical findings: Innovative companies in Europe were found to be more likely to perform over 20%growth in three consecutive years than non-innovative companies (25%versus 14%).8 However,
Finally, this Brief considers small and medium-sized enterprises (SMES), defined as companies with less than 250 employees.
Exhibit 2-1 visualises the share of enterprises which this studies targets. Exhibit 2-1:
high growth innovative enterprises high growth innovative SMES innovative SMES gazelle-SMES high growth SMES all SMES hightech SMES all
enterprises Note: Circle sizes do not reflect the actually existing number of companies. In particular, high-growth enterprises and innovative enterprises are in reality just a small share of all enterprises.
Not shown: There are gazelles that are not SMES. Source: empirica A definition of innovation The OECD's Oslo Manual is accepted a commonly source for definitions of innovation.
Matrix of main data sources for INNO-Grips Policy Brief 2 Quantitative focus Qualitative focus Primary data collection Representative enterprise survey (CATI
Internet research with key search words such as high-growth enterprises, gazelles. Data from various secondary sources is used here not only for exhibiting numbers of high-growth enterprises but also for other indicators such as venture capital provision.
Primary data collection The description of examples of successful support of high-growth innovative companies is a key element of this Policy Brief.
Targeted questions were included in a primary enterprise survey by the Institut der Deutschen Wirtschaft, the IW Zukunftspanel (directly translated from German:
Canada (http://www. allanmartelconsulting. com). Allan Martel Consulting specialises in coaching SMES and also larger enterprises to develop
Determinants of enterprises'innovation activity and growth the innovation and growth triangle Resources Knowledge/skills Technological:
But the kind of political measures that should be implemented to make the determinants more conducive to enterprise innovation and growth,
the composition of effective policies and the types of enterprises that should be supported are all controversial issues. 17 In the Policy Brief,
Many of these preconditions that foster the development of high growth enterprises are thought generally to be understood;
literature Although the subject of high-growth enterprises is of fairly recent interest, a considerable and further growing amount of literature is available. 18 For this Policy Brief,
Major studies about high-growth SMES for the European commission In recent years the European commission charged three studies about high-growth enterprises which brought forward the following main results:
In December 2010 the OECD published a report named high-growth enterprises: what governments can do to make a difference.
Key findings include that high growth can occur in the life of virtually any enterprise
OECD The EIP provides data about high-growth enterprises which may be taken as a proxy for data about highgrowth innovative SMES.
For this year, Bulgaria was on top for both manufacturing (8. 6%high-growth enterprises)
while some European countries, notably from Eastern europe, outperformed the US in terms of high-growth enterprises, the USA were nevertheless ahead of most other European countries for
which data about high-growth enterprises were available, including Hungary, Sweden Spain, Norway, Luxembourg, Finland, and Romania.
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 Policy Brief by Bruegel, a Brussels based think-tank, in 2009 examined the age of the companies with the highest R&d expenditures among the largest enterprises from the US, Europe and other countries. 21 Of the US enterprises,
and of the enterprises from other countries, 9%were founded after 1975 and 58%before 1925.
only 2%of the European enterprises were founded after 1975, while 86%were established before 1925. Exhibit 3-3 shows the related data. 21 See Veugelers (2009),
and the largest enterprises from other countries from EU-IPTS non-EU R&d scoreboard companies.
The sample for the US included 80 enterprises, the EU sample 86 enterprises and the sample for other countries 60 enterprises.
Share of enterprises with highest R&d expenditure by age class and world 0%20%40%60%80%100%Pre-1925 1925-1950 1950-1975 Post
Veugelers (2009), p. 2. Thus the share of young enterprises among large innovative companies is much larger in the US
If large innovative enterprises are young, they must have passed through a period of high growth. In other words:
smaller global leaders, some in niche markets, enterprises that may be established long but largely unknown to the public due to their specific products and services,
the faster unsuccessful companies in the same industry shrink. 24 These results shed light on the crucial importance of business dynamism for generating high-growth enterprises
First, innovative enterprises introduce new products, services, production processes or business methods that enhance consumer welfare.
Third, enterprises can contribute to industrial clusters and ensuing agglomeration benefits for other firms. A specific type of positive externalities is a public good.
Furthermore, growing enterprises may also produce negative externalities: First, they may destroy the rents, market shares or employment of established enterprises.
Second, when there are strong first mover advantages for market entrants, the result may be an undesirable contest with too much rent seeking and investment from the society's perspective.
and SME growth policy Many determinants of enterprise growth opportunity seeking crucial A crucial question for evidence-based and effective policies to foster enterprise growth is:
Why do enterprises grow? Or rather: Why do some enterprises grow while others do not?
This is a general question that requires a complex answer. 28 Hölzl (2008) found that there are many factors
Possible barriers for high growth of enterprises in the EU As there may be evidence that Europe generates less high-growth SMES or at least less young global leaders than other major economic regions in the world,
this argument becomes less strong considering the relatively large shares of high-growth enterprises in the Nordic countries of Denmark,
In fact, the largest share of answers of yes for company start-up is an attractive professional option was found in The netherlands (86%).37 High-growth enterprises are very important for employment creation...
The number and share of high-growth enterprises more precisely: of those enterprises with persistent high growth is small,
but the number and share of jobs they create is disproportionally large. 38 A study by the World Economic Forum published in 2011 claims to present the first extensive evidence that covers both revenues and headcount growth
and only in large diversified metropolitan regions. 42 Several studies by the Finnish economist Erkko Autio published in 2007 substantiated the importance of a small share of high-growth enterprises for overall
Davidsson/Steffens/Fitzsimmons argue that growth is often not a sign of sound enterprise development.
and innovation. 48 Among the most prominent studies about policies for high-growth enterprises are the ones by the OECD (2010) and Autio (2007).
support the provision of training in young and small enterprises, improve access to debt and equity finance when necessary,
Autio et al. produced a comprehensive analysis of policies for high-growth enterprises. The study team mentions the following lessons and good practices from a study about policies for high-growth SMES in the nine countries of Australia
when choosing participating enterprises and entrepreneurs because only a very small share of them are willing and able to achieve rapid growth.
66%of the enterprises stated they would not have set up the business without GIF support. 62 The share of highgrowth SMES (more than 20%growth in three consecutive years) in GIF was 48%.62%of the GIF beneficiaries
59 See http://www. eif. org/what we do/equity/venture/index. htm. 60 See http://ec. europa. eu/enterprise/policies/finance/cip-financial-instruments/index en
One of the most prominent and recent national policy activities for high-growth enterprises is the Startup America initiative by the US government. 66 In the following, some policy approaches in Europe
VIGO is a type of incubator that focuses on young enterprises with high growth potential.
In 2008 and 2009 in total 50 enterprises were funded. This funding is intended for small early-stage enterprises with impressive plans and the resources necessary for international growth.
For example, funding was provided to two companies that in January 2010 received the prestigious red herring global 100 award for the world's most promising technology industry companies:
In 2009 the growth company development service covered around 400 enterprises. 74 Enterprise Finland is a business service for foreigners
In January 2011 it organised the first Enterprise Finland Venture Forum, connecting 37 national and international financiers with 25 Finnish growth companies. 75 At the beginning of 2008 the innovation department of the Ministry of Employment and the Economy established a division for growth ventures.
exemplary activities exist but no EU-wide replication As the evaluators of the supportiveness of the Finnish innovation system for high growth enterprises state, most first time,
and further levels of professional advice consistent with the growth needs of the enterprise. 81 A special means of accessing knowledge in the course of running
200 start-up enterprises received the CTI start-up label, and 85%of them are still operating,
p. 9. 95 See http://ec. europa. eu/enterprise/entrepreneurship/financing/publications documents. htm. 96 See OECD (2010), p. 11.
EVCA (2011) Policies to improve access to finance Unclear economic foundation of policy interventions The origins of imbalance between demand for finance enterprises
p. 153.99 See http://ec. europa. eu/enterprise/policies/finance/financing-environment/index en. htm. 100 As announced by the European commission on 13 april 2011,
By the end of 2010, such investments were made 103 See http://ec. europa. eu/enterprise/policies/finance/financing-environment/sme-finance-forum/index en. htm. 104 See http://ec
. europa. eu/enterprise/policies/finance/risk-capital/business-angels/index en. htm. 105 See http://ec. europa. eu/enterprise/policies/finance/risk-capital/start-up
and section 4. 1. 1 in this Policy Brief about GIF. 106 See http://ec. europa. eu/enterprise/policies/finance/risk-capital/venture-capital/index en. htm. 107
See http://ec. europa. eu/enterprise/policies/finance/risk-capital/venture-capital/index en. htm. 108 See http://ec. europa. eu/enterprise/policies/finance/risk-capital
Website informing entrepreneurs about where to seek finance for certain stages in the life of an enterprise in a certain region may be helpful
and raises financial barriers to innovation. 123 The importance of the Single Market for enterprises'growth opportunities was raised also in the workshop related to this Policy 116 Murray/Hyytinen/Maula (2009),
the Enterprise Europe Network At EU level the link between innovation and internationalisation has been recognised fairly recently. 129 A key initiative is the Enterprise Europe Network (EEN), supported by the European commission,
which links innovation and internationalisation policies. Its mission is helping small companies make the most of the business opportunities in the European union, 130 bringing together 580 member organisations in 47 countries.
See also public consultation Small Business, Big World-A new partnership to help SMES seize global opportunities, http://ec. europa. eu/enterprise/newsroom/cf/itemlongdetail. cfm?
item id=5119.130 See http://www. enterprise-europe-network. ec. europa. eu/about/mission. Policies for high-growth innovative SMES v1. 6 46 projects and intellectual property rights.
According to DG Enterprise and Industry, since the establishment of EEN in early 2008 by the end of 2010 more than 2 million SMES tapped into the network.
and it provides advice on developing an international strategy to the enterprises. A 2010 study evaluating the results of the merger found that the merger helped to establish the international perspective within the organisation,
DG Enterprise and Industry issued a study to assess sectoral policy approaches and to identify good practices in these initiatives. 139 The study found that sectoral initiatives were not necessarily more effective than other programmes.
Policy examples The Finnish activities to support high enterprise growth apparently have no industry focus (see section 4. 1. 2). The Danish Accelerace programme has no specific industry focus either,
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
focusing on improving the business environment for all enterprises rather than aiming to create specific incentives for growth.
Fast growing enterprises could be taken into account, but not at the expense of other SMES.
Increasing European interest in Korea has also become evident in 2010 by establishing five contact points of the European Enterprise Network there,
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).
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;
establishing a support system to link excellent technology ideas with start-ups; financial support and training for entrepreneurs'clubs at universities;
Matching funds for SMES for developing new products with the help of universities, research institutes and other enterprises.
they can receive Enterprise Joint Tech Development funds. The Production Environment Innovation Tech Development programme provides funds to improve efficiency of the production line and product quality.
which encompasses, for example, continuous expansion of SMES'R&d investment and support for technology innovation R&d of global leader enterprises.
one within the existing framework and the other with the new concept of the mid-sized enterprise.
which was oriented towards large enterprises in the past, to SMES. The new focus is on the promotion of Global Star SMES as the backbone of the economy.
The selected enterprises will be supported by a comprehensive support package; examples of this support include technology,
Korea Eximbank Promoting the mid-sized enterprise Korea is concentrating on the advancement of mid-sized enterprises with more than 300 and up to 1,
The introduction of policy schemes for supporting this group of enterprises will probably impact the Korean economy dramatically in the coming years.
Introducing a related law (Mid-sized Enterprise Promotion Act) and the institutionalisation of this structural change are complicated issues and currently under discussion.
the government is supporting the transformation of SMES focusing on domestic demand into export-oriented enterprises.
but strong global enterprises is the policy focus. An Example of a company with Korean government support:
Not only large enterprises, but also SMES invested in foreign countries aggressively. SMES'share of overseas investment reached 54%in terms of the number of cases and 26%in terms of amount.
Although, for example, more than 30,000 enterprises were designated as innovative SMES, the designation system itself seems less practical.
Lessons learned Positive assessment of the new SME policy concept The new directions of SME policy in Korea for nurturing global players and institutionalising policies for midsized enterprises
and has launched initiatives towards developing high-growth enterprise clusters. Two Singaporean government agencies are involved directly in supporting high-growth SMES:
SPRING (Standards, Productivity and Innovation for Growth) Singapore and A*STAR with a sub-programme named Get-Up (Growing Enterprises through Technology Upgrade.
SPRING explicitly seeks to grow dynamic and innovative growth-oriented enterprises. GET-Up supports long-term pre-competitive R&d.
thus implicitly aspiring to generate high-growth enterprises. While the government has attributed the successful recovery from the word-wide economic crisis to the numerous opportunities SMES have been provided with,
According to Statistics Singapore and the Economic Development Board, 99%of all enterprises are micro, small and medium-sized enterprises.
Singapore has launched an array of initiatives towards developing highgrowth enterprise clusters. The aim is to generate new creations, new products, new services and technology through the careful analysis of emerging markets, technologies, business perspectives and global trends,
SPRING (Standards, Productivity and Innovation for Growth) Singapore and A*STAR with a sub-programme named Get-Up (Growing Enterprises through Technology Upgrade.
IE Singapore promoting the internationalisation of potential high-growth enterprises and the Jurong Town Council providing real estate and connectivity infrastructures for high-growth SMES.
& Develop Clusters SPRING Singapore Create Enterprises Nurture and Grow SMES IE Singapore Create Markets Develop access to overseas markets A*STAR Create Knowhow Attract
SPRING Singapore is an enterprise development agency with a focus on supporting the growth of local Singaporean enterprises.
SPRING explicitly seeks to grow dynamic and innovative growth-oriented enterprises i e. to support high-growth SMES.
seeking to elevate foreign trust in Singapore's enterprises, products and services. Exhibit 5-6 shows SPRING's scheme for developing companies from start-up to large enterprises.
Exhibit 5-6: SPRING's enterprise development concept Source: SPRING Singapore Policies for high-growth innovative SMES v1. 6 63 In the financial year 2009/2010, SRING Singapore was allocated an operating budget of 54.5 million Singapore dollars (approximately 27.3 million euro),
making it a considerably powerful organisation. SPRING collaborates with trade development agencies to assist promising local businesses with government funding, capability and management development, technology and innovation enhancement, and internationalisation.
and the Enterprise Internship Programme (EIP) to assist the development of high-growth SMES. MAP works with high-growth SMES to attract,
Policies for high-growth innovative SMES v1. 6 64 The Design Engage Initiative helps local enterprises build strategic-design thinking capabilities.
Get-Up Programme with A*STAR The GET-Up programme, short for Growing Enterprises through Technology Upgrade,
supports long-term pre-competitive research and development (R&d) and enhances the technology competence of potential enterprises. It is a joint initiative led by the Singapore Agency for Science, Technology and Research (A*STAR), in collaboration with the Economic Development Board,
A*STAR's Science and Engineering Research Council helps enterprises in the Get-up programme pair up with research partners to enhance their technology Edge in fiscal year 2009/2010
thus implicitly aspiring to generate high-growth enterprises. There are four support initiatives under the Get-UP programme in support of innovative high-growth SMES:
Technology for Enterprise Capability Upgrading (T-Up) is a multi-agency effort involving sending Research Scientists and Engineers (RSES) to local enterprises.
potential high-growth enterprises may leverage on the Research Institutes laboratory facilities for their R&d related activities.
By the end of 2010,3 million Singapore dollars, in grants, had been extended to 34 promising local enterprises. 149 See http://www. a-star. edu. sg/Industry/Programmesforsmes/GETUPPROGRAMME/tabid/220
http://www. greenpac. com. sg, IDC Government Insights Asia/Pacific Example from Get-UP Technology for enterprise capability upgrading for Resin
small and medium-sized enterprises in Singapore and the traditional strength of the manufacturing and finance sectors, the government is seeking strategic investments to groom potential high-growth enterprises and drive the diversification
/SPRING Singapore-Building Growth Enterprise http://www. spring. gov. sg/Aboutus/AR/Documents/ar2009 2010/pdf/9-building-growth-enterprise. pdf
However, enterprises with the majority of their VC funding (but less than 100%)coming from government VCS have significantly worse exit performance than enterprises with private VC funding.
Government programmes often have multiple agendas, e g. local employment and regional development. Therefore governments should take note of this key finding. 161 In a 2010 study for CVCA Gilles Duruflé undertook a review of government assistance for firms in eight countries that showed that there was a positive role played by government supported VC funds
Diversification and clustering of SMES for future growth Summary Although the fall out from the 2008 Lehman brothers collapse continues to skew the Japanese government's SME (small and medium-sized enterprise) policies towards finance and employment safety net issues,
Key characteristics of SME policies in Japan The key concept guiding Japan's SME policies through much of the post second world war era has been to rectify the gap between SMES and large enterprises in terms of productivity.
1) supporting self-help efforts for business innovation and start-up,(2) strengthening of management base and (3) facilitating apt responses by enterprises to abrupt environmental change.
4) finance and taxation and (5) consideration for small-scale enterprises. These five new policy systems have shifted public discussion from protection to promotion of SME business activities;
, Emergency Guarantee Programme and the SME Financing Facilitation Act), a commissioned Survey of Fund Raising by Small and Medium Enterprises finds that a more fundamental problem hindering innovative SMES is the corporate tax burden
According to the Survey of Fund Raising by Small and Medium Enterprises, a major bottleneck in financing is due to a perception gap between financial lenders and innovative SMES,
White paper on Small and Medium Enterprises in Japan: Pulling Through the Crisis. Tokyo: Ministry of Economy, Trade and Industry (www. meti. go. jp) White paper on Small and Medium Enterprises in Japan:
Finding Vitality Through Innovation and Human resources. Tokyo: Ministry of Economy, Trade and Industry (www. meti. go. jp)( p40 70 in 2009wp) Ministry of Education, Culture, Sports, Science and Technology (MEXT.
Survey of Fundraising by Small and Medium Enterprises. Tokyo: commissioned by SME Agency Survey on Market Capture and Intellectual Property.
Policies for high-growth innovative SMES v1. 6 77 Organisation for Small and Medium Enterprises and Regional Innovation (SMRJ.
3) cooperation with international enterprises, aimed at developing joint technological projects;(4) green momentum for SMES, aimed at developing technologies or products related to water and green energy;
and implements international, cooperative, industrial R&d programmes between Israeli and foreign enterprises. Matimop implements international technological cooperation programmes with international agencies, bodies and organisations;
164 The IW Future Panel is a survey of German enterprises which was established in 2005 with the objective of identifying trends and challenges of structural changes of the economy.
Only enterprises from manufacturing and manufacturingrelated services (such as wholesale, transport services, research and development, consulting) are included in the survey.
Breakdowns In all surveys of the IW Future Panel the enterprises are asked about their growth by employment and turnover;
%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,
510 enterprises this information about their growth is available. 59 enterprises (4%)were found to having performed high growth in the past three years,
and thus fulfilled the OECD criteria for high-growth enterprises; 26 of them were SMES.
Of the 59 high-growth enterprises, 71%stated to have introduced new products, services or processes in the past two years and can
thus be classified as innovative. 52%of the 59 high-growth enterprises are exporting. The survey also provides the age of the enterprises,
allowing to identify gazelles, i e. high-growth companies that are not older than five years.
Policies for high-growth innovative SMES v1. 6 82 Questions Those enterprises performing high growth in the past three years were asked about the reasons for this growth.
open option allowing the enterprises to fill in further reasons as appropriate. Those enterprises stating that they did not perform growth in the past three years were asked about the reasons for not growing.
They were offered also eight items with similar subjects as the growing companies as well as one open question for further reasons of non-growth.
Since this survey is restricted to German enterprises, it does not necessarily allow conclusions for other countries to the extent that specific national circumstances are concerned.
-growth enterprises The single most important reason for high growth quoted was that management actually targeted growth (see Exhibit 6-1). 71%of the high-growth companies stated that this was an important reason for growth.
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,
Findings for non-growth enterprises The most important reason for non-growth stated by the non-growing enterprises was unfavourable development of the business cycle.
Findings for gazelles Results for gazelles indicate particularities of newly founded high-growth enterprises. There are several differences to the results for the total of high-growth enterprises (see Exhibit 6-2): 168 The most important differences include:
The assessment that the management targeted growth of the company applied to 82%of the gazelles,
All in all, entrepreneurs pursuing business opportunities appear to be pronounced an even more reason for gazelle growth than for growth of older high-growth enterprises. 168 Differences should be considered cautiously
Reasons for growth of young high-growth enterprises (gazelles) in the IW Future Panel 23 55 82 0 32 27 42 24 55 27
The dynamic character of high-growth enterprises suggests that static policies i e. policies aimed at all SMES,
or not will not work to facilitate growth for enterprises which grow quickly: In fact, such policies may put a break on growth, particularly on the fastest growing and most successful firms,
when considering that enterprises'strategies may have to change in the face of changing economic environments. 175 Speed limitations:
Even if policy achieved an increase of the numbers of highgrowth enterprises, the downside may be an equal increase of high failure. 177 Is Europe ready for this type of business dynamism as in the US?
the promising high-growth enterprises of today can be the big losers of tomorrow. In conclusion of these dilemmas, it appears to be advisable for policy makers to not seek to pick winners
Findings from an enterprise survey in the context of this Policy Brief (see Section 6. 2) suggest that company growth largely depends on the management's willingness to grow
A suggested enhancement of the Enterprise Europe Network The Enterprise Europe Network (EEN) provides opportunities for SMES to enter into joint development arrangements with appropriate partners across Europe,
How should SME policies be balanced with enterprise policies at large? Economists suggest that policy should not principally favour SMES.
Which type of enterprise generates most innovations and growth depends on many factors, e g. market size, stage of market development, industry, and many more.
it appears to be worthwhile for EU policy makers to support high growth of enterprises in order to leverage the positive impact of this type of enterprises.
Arguments from market failure theory on which policies for innovative high-growth SMES can be based also apply to non-growing, larger and non-innovative enterprises.
Since high-growth enterprises can be found in any industry and since business ecosystems, which are important for companies'sustainability and growth,
This may include further work towards single markets in Europe as well as enhancing the EC's Enterprise Europe Network.
High growth enterprises and gazelles. Statistics Directorate, OECD. Paper prepared for the International Consortium on Entrepreneurship (ICE) Meeting 22-23 february 2007, Copenhagen, Denmark.
Journal of Small Business and Enterprise Development, Vol 16, no. 4, pp. 586-598. Audretsch, David (2004:
Journal of Small Business and Enterprise Development. Vol 17, No. 1, pp. 8-31. Mason, Colin;
Final report of a research project commissioned by Scottish Enterprise. October. Minniti, Maria (2008: The role of government policy on entrepreneurial activity:
Conducted upon the request of Directorate General Enterprise and Industry of the European commission, in cooperation with the European central bank.
Growth Enterprise Review 2011. Finnish: Kasvuyrityskatsaus 2011. Available at http://www. tem. fi/files/29659/TEM KASVUYRITYSKATSAUS 2011. pdf. Policies for high-growth innovative SMES v1. 6 100 Moore, Geoffrey (1998:
High-Growth Enterprises: What Governments Can Do to Make a Difference, OECD Studies on SMES and Entrepreneurship, OECD Publishing.
European commission, DG Enterprise and Industry. Available at http://www. proinnoeurope. eu/sites/default/files/newsroom/2010/12/Innogripsii report barriers. to . internationalisation. a nd . growth 0. pdf. Shane, Scott (2009:
Enterprise Europe Network: http://www. enterprise-europe-network. ec. europa. eu, last accessed January 2011.
EUREKA, http://www. eurekanetwork. org/about-eureka, last accessed May 2011. EUREKA's Eurostars Programme, http://www. eurostars-eureka. eu, last accessed May 2011.
http://ec. europa. eu/enterprise/policies/finance/index en. htm, last accessed May 2011. Policies for high-growth innovative SMES v1. 6 102 European Investment Fund, http://www. eif. org/what we do/equity/venture/index. htm,
Enterprise Finland Venture Forum: https://www. efvf2011. b2bmatchmaking. com/p index. php, last accessed May 2011.
Singapore Agency for Science Technology and Research, Growing Enterprises through Technology Upgrade (GET UP: http://www. astar. edu. sg/Industry/Programmesforsmes/GETUPPROGRAMME/tabid/220/Default. aspx, last accessed May 2011.
Journal of Entrepreneurship 8 Journal of Enterprising Culture 9 Small Business and Enterprise Development 1 Harvard Business Review 2 California Management Review 3
A critical nordic tale about perceptions of entrepreneurial opportunities, goals and growth Small Business and Enterprise Development 2010 Hoxha/Capelleras Fast-growing firms in a transitional and extreme environment:
Since the sample included only German enterprises, the original questions were in German. Policies for high-growth innovative SMES v1. 6 107 Annex 3:
and development-orientated small or medium-sized enterprise. Source: http://www. tekes. fi/en/community/Small businesses/548/Small businesses/1420) TEKES is the Finnish Funding Agency for Technology and Innovation. http://www. tekes. fi
by Enterprisefinland A key aspect of growth business policy is offered that by the Growth Business Service, part of the Enterprise Finland (Yritys-Suomi) project,
you can apply to the Innovative HPSU Fund for an Enterprise Ireland equity investment. Having secured the necessary investment to start the business,
http://www. enterprise-ireland. com/en/fundingsupports/Company/HPSU-Funding/)Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets.
Enterprises with the highest credit grade enjoy the highest discount loan of 40%.(%Source: Cunningham (2008), p. 24.
in May 2007 to support the development of high-growth enterprises. Source: Cunningham (2008), p. 24.**
***Five-year Plan for Gazelle Enterprises, by Hangzhou Municipal government Hangzhou Municipal government announced a Gazelles plan in May 2008, the Five-year Plan for Gazelle Enterprises in Hangzhou (2008-2012.
The plan aims to invest in 500 high-growth enterprises by 2012 by providing special funds and increasing capital accessibility.
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