 The growth determinants among Swedish SMEs: evidence from firm-level dataInternational Journal of Business and Globalisation, 2011, vol. 6, issue 3/4, 313-328 Abstract: This paper identifies the firm-level internal determinants that explain the economic growth of Swedish SMEs. The analysis is based on a sample consisting of 989 growth SMEs and 6,119 non-growth SMEs with 95,475 observations, and applies logistic regression models for the period 2004-2006. The results, which have a high rate of accuracy, indicate that a set of four factors – age, size, leverage rate and profitability – had a significant impact on the growth probability of sample firms over a period of three years. The results can be summarised as follows. First, younger SMEs have a better chance of seeing growth. Second, financial constraints significantly decrease the probability of growth in terms of employees. Third, profitability plays a significant role in the growth process. Lastly, access to external financial resources has a positive effect on the growth of firms. The results of this paper are useful for firm stakeholders, including managers, shareholders, debt holders and potential investors, as well as academic researchers and policy makers. Keywords: growth determinants; financial constraints; Swedish SMEs; Sweden; small and medium-sized enterprises; SME growth; firm age; firm size; leverage rate; profitability; firm growth. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbglo:v:6:y:2011:i:3/4:p:313-328 Access Statistics for this article More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd |
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