Do profitable start-up firms grow faster? Evidence from Colombia

Yuji Honjo ()

Revista Cuadernos de Economia, 2018, vol. 37, issue 75, 727-754

Abstract: This study explores the impact of profitability on the growth of start-up firms. Using data on start-up firms in Colombia, we examine the relationship between firm growth and profitability. We provide evidence that start-up firms with higher profitability increase their total assets. However, we find little evidence that profitability positively affects sales growth for start-up firms. In contrast, the results provide support for the notion that profitability is derived from sales growth. Furthermore, we find that firm growth depends heavily on firm age during the start-up stage.

Keywords: Growth; Profitability, Start-up (search for similar items in EconPapers)
JEL-codes: L21 L26 M13 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000093:017126

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