Speed and Scaling: An Investigation of the Acceleration of Firm Growth

Abstract

Most firms do not grow, while a small number of firms not only maintain their growth but are able to accelerate it over time. Researchers, practitioners and policymakers continue to question what factors facilitate or indicate that a firm has a greater chance to grow more rapidly and become a more powerful economic driver. Using a robust longitudinal dataset from the United Kingdom (UK) during 2000–2017, we investigate the propensity of firms to accelerate in sales, employment, labor productivity and relative market share growth. We find that firm, industry and regional level factors help explain whether organizations become scale-ups and achieve accelerated firm growth. This study adds new insights into the conceptual models available to policymakers and firm managers so that they can better understand the key factors of firm growth acceleration. In doing so, this study paves the way for further investigations into the speed of firm growth.