Empirical exploration of a cohort of new technology-based firms in Sweden: what happens to them during their early years?

Heikki Rannikko; Erno Tornikoski; Anders Isaksson; Hans Löfsten; Hanna Rydehell

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The Dynamics of Entrepreneurial Contexts

Frontiers in European Entrepreneurship Research

Frontiers in European Entrepreneurship series

Edited by Ulla Hytti, Robert Blackburn and Silke Tegtmeier

Context is everything in entrepreneurship research. This book compellingly demonstrates the ways in which the distinctive European cultural, societal and geographic environments enable research into new entrepreneurial phenomena. It also gives guidance as to how future research should endeavour to understand the influences of context.

Monograph Book

Published in print:: 23 Feb 2018

ISBN:: 9781788110983

eISBN:: 9781788110990

DOI:: https://doi.org/10.4337/9781788110990

Pages:: 224

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Chapter 9: Empirical exploration of a cohort of new technology-based firms in Sweden: what happens to them during their early years?

Heikki Rannikko, Erno Tornikoski, Anders Isaksson, Hans Löfsten and Hanna Rydehell

Monograph Chapter

Published:: 23 February 2018

DOI:: https://doi.org/10.4337/9781788110990.00015

Pages:: 166–206 (41 total)

Collection: Business 2018

Abstract

This chapter investigates the survival and growth trends in a cohort of new technology-based firms (NTBFs) established in Sweden in 2006. We make several contributions to the current understanding of NTBF survival and growth. First, our empirical observations show that many firms (70 per cent) from the 2006 cohort of NTBFs were still operating at the end of 2014, a much higher survival rate than found in previous studies. Second, very few firms experience high growth during their first seven years, and employment growth and sales growth are highly correlated among high-growth firms. Third, challenges of measuring growth in new and very small firms using the ‘kink-point’ approach are addressed.

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