Growth factors: Why are some ventures growing fast and others aren’t?

Mojca Svetek  |  27 March 2024

In the world of startups, success is measured by revenue growth, market share growth and employment growth. But what makes a startup grow?

This episode reveals four growth factors:

  • Market: Why choosing the right market is critical to a company’s growth.
  • Business strategy: What are the business strategies that support high growth?
  • Founder: What are the characteristics of the founder that predict venture growth?
  • Resources: Why are external investors so important for venture growth?

Research articles:

  • Audretsch, D. B. (2012, March). Determinants of high-growth entrepreneurship. In Report prepared for the OECD/DBA International Workshop on “High-Growth Firms: local policies and local determinants.
  • Cassar, G. (2007). Money, money, money? A longitudinal investigation of entrepreneur career reasons, growth preferences and achieved growth. Entrepreneurship & Regional Development, 19(1), 89-107.
  • Croce, A., Martí, J., & Murtinu, S. (2013). The impact of venture capital on the productivity growth of European entrepreneurial firms: ‘Screening’or ‘value added’ effect? Journal of Business Venturing, 28(4), 489-510.
  • Demir, R., Wennberg, K., & McKelvie, A. (2017). The strategic management of high-growth firms: A review and theoretical conceptualization. Long range planning, 50(4), 431-456.
  • Ewens, M., & Marx, M. (2015). Executive replacement in venture capital-backed startups. In Academy of Management Proceedings (Vol. 15059). Briarcliff Manor, NY 10510: Academy of Management.
  • Gilbert, B. A., McDougall, P. P., & Audretsch, D. B. (2006). New venture growth: A review and extension. Journal of management, 32(6), 926-950.
  • Hermans, J., Vanderstraeten, J., Van Witteloostuijn, A., Dejardin, M., Ramdani, D., & Stam, E. (2015). Ambitious entrepreneurship: A review of growth aspirations, intentions, and expectations. In A. C. Corbett, J. A. Katz, & A. McKelvie (Eds.), Entrepreneurial growth: Individual, firm, and region (Vol. 17, pp. 127-160). Emerald Publishing.
  • Kaplan, S. N., Sensoy, B. A., & Strömberg, P. (2009). Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies. The Journal of Finance, 64(1), 75-115.
  • Kaplan, S. N., Sensoy, B. A., & Strömberg, P. (2009). Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies. The Journal of Finance, 64(1), 75-115.
  • Mitteness, C. R., Baucus, M. S., & Sudek, R. (2012). Horse vs. jockey? How stage of funding process and industry experience affect the evaluations of angel investors. Venture Capital, 14(4), 241-267.
  • Peneder, M. (2010). The impact of venture capital on innovation behaviour and firm growth. Venture Capital, 12(2), 83-107.
  • Piazza, A., Reese, D., & Chung, S. H. (2023). Venturing through the Doors of Perception. Academy of Management Discoveries, 9(1), 1-16.
  • Puri, M., & Zarutskie, R. (2012). On the life cycle dynamics of venture‐capital‐and non‐venture‐capital‐financed firms. The Journal of Finance, 67(6), 2247-2293.
  • Wasserman, N. (2008). The founder’s dilemma. Harvard business review, 86(2), 102-109.
  • Wiklund, J., Davidsson, P., & Delmar, F. (2003). What do they think and feel about growth? An expectancy–value approach to small business managers’ attitudes toward growth. Entrepreneurship Theory and Practice, 27(3), 247-270.
  • Wiltbank, R., Dew, N., & Read, S. (2015). Investment and returns in successful entrepreneurial sell-outs. Journal of Business Venturing Insights, 3, 16-23.