Fast-growing firms as elements of change in Canada’s headquarters city system

Abstract

This research explores the factors that shape the evolving geographic distribution of business headquarters (HQ) activity. We address an understudied influence on HQ geographies: metropolitan HQ changes driven by the process of small, rapidly expanding businesses growing into mature companies. This investigation focuses on the developmental paths followed by fast-growing firms (FGFs) and the geographic distinctions that can be observed in a FGF tracking study of Canada’s metropolitan regions from 1987 to 2005. Our research findings indicate that geography plays an important role in this development, as FGF tracking records throughout Canada’s metropolitan areas diverge sharply. We find that most FGFs that emerged in Vancouver and Toronto continued as ongoing businesses following their rapid growth phase, while a high proportion of FGFs based in Montréal and Calgary did not. These results contribute to a greater understanding of metropolitan economies, business development, and HQ location in Canada