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The Significance of High Rise Enterprises (HGEs) Essay

Project id 1008725
Subject area Other
Document type Essay
Words 2147
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Performance of High Rise Enterprises To be able to execute any empirical research on the impact high growth businesses have on the economy, clear guidelines need to be established to categorise and identify them. The most widely used and accepted guideline is that the OECD definition of high-growth companies. The OECD suggest to use two performance indexes, the job dimensions and the turnover. Enterprises are classified from the high growth industry when their average annualised increase is bigger than 20 percent per year more than a 3 year span, ideally in both formerly introduced indicators (OECD, 2007, Ch 8). Also a size threshold of 10 has been placed on the employment step to exclude 100% development rates of companies that grow from one to two workers. This classification leaves blind places excluding businesses existing less than 3 years. Furthermore it's a 3 year reaction period until new information is included in the information collection but consequently any unprofitable short term businesses are automatically excluded. Summary of the Business Environment By implementing the previously discussed classification approach the impact different business types have on the economy can be empirically examined. Literature suggests that high growth companies aren't only found in the surroundings of recently founded businesses, but may be discovered in all phases of business era (Anyadike-Danes et al., 2009). In this paper but we focus mostly on newly established enterprises, since this is the sector that is quite sensitive to external influences and encourage e.g. through policy changes. New companies existing for under 5 years that classify as HGEs are known as ‘gazelles’ (OECD, 2010, page 16) and also have proven to be significant employment generators (Henrekson &...

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