Growth intention and sales revenue growth in small business: the mediating effect of firm size growth

Abstract

While the direct influence of growth intention on small business growth has been examined in entrepreneurship literature, little research distinguishes the different forms of growth and how they are interrelated. This article draws upon growth intention to examine whether firm size growth is the channel through which growth intention influences sales growth. Results from the analysis of a dataset of 20,472 French new ventures reveal that: 1) growth intention has a positive impact on sales growth; 2) firm size growth has a positive impact on sales growth; 3) firm size growth mediates the effect of growth intention on sales growth. These findings show that firm size growth is a means to achieve sales growth and not only a finality per se.