Determinants of Growth of Start-Ups in the Netherlands

Dynamics and growth of firms are considered to be important for enhancing economic growth. Growth is an issue of all times. Especially start-ups are relatively fast growing firms and contribute largely to employment creation. This paper examines the determinants of growth of start-ups in the Netherlands. In literature there is a distinction between three dimensions of growth: market/industry, entrepreneurial/managerial and firm-specific. A longitudinal dataset containing ten years of information on start-ups is used for analysis. For each dimension the authors obtained several determinants of growth. Several determinants have a positive effect on growth in the first five years such as: unfulfilled needs, a partner with an own firm, management and sector experience, a growth objective and networking.

Provided by: EIM Business & Policy Research Topic: Start-Ups Date Added: Jun 2006 Format: PDF

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