Theoretical Definition of a Scale-up

Alex Coad (), Anders Bornhäll (), Sven-Olov Daunfeldt () and Alexander McKelvie ()
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Anders Bornhäll: Institute of Retail Economics
Sven-Olov Daunfeldt: Confederation of Swedish Enterprise
Alexander McKelvie: Syracuse University

Chapter Chapter 5 in Scale-ups and High-Growth Firms, 2024, pp 31-42 from Springer

Abstract: Abstract This chapter draws on the literature to develop our theoretical definition of a scale-up. A critical discussion of previous literature helps distinguish between aspects that are essential or unnecessary for a definition of a scale-up. We then put forward the following five suggestions for a theoretical definition of a scale-up: (1) Scale-ups are in all sectors, not just IT; (2) Scale-ups have relatively high levels of spending on marketing and sales; (3) Scale-ups have low marginal costs of production; (4) Scale-ups are young, but not too young; (5) In defining scale-ups, we start from the set of HGFs. The chapter ends with our own theoretical definition of a scale-up.

Date: 2024
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DOI: 10.1007/978-981-97-1379-0_5

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