The importance of small firms in a country’s development cannot be over-emphasized. In particular, it is important for them to grow in order to sustain their contributions to a country’s economy. Studies have shown how firms achieve growth using the traditional model of decision making (causation) in which planning, market research and forecasting are used to gain relevant information about the firm’s market/industry. This planning enables the firms to compete favourably with other existing firms in the market. Effectuation as an alternative theory involves decision-making processes under conditions of uncertainty where there is no adequate knowledge of the market due to its latent and emerging nature. Effectuation has been used to examine various concepts in entrepreneurship, but there has been no real effort to apply it to the growth of small knowledge-intensive firms (SKIFs). This study, based on in-depth interviews with six SKIFs, highlights how effectuation can be applied to the growth of SKIFs and it examines how the four underlying principles of contingencies, affordable loss, strategic relationships and adaptation contribute to SKIF growth. In addition, elements of causation are also shown to be relevant, leading to the conclusion that the two models can be used jointly to achieve growth of SKIFs.

The importance of small firms in a country’s development cannot be over-emphasized. In particular, it is important for them to grow in order to sustain their contributions to a country’s economy. Studies have shown how firms achieve growth using the traditional model of decision making (causation) in which planning, market research and forecasting are used to gain relevant information about the firm’s market/industry. This planning enables the firms to compete favourably with other existing firms in the market. Effectuation as an alternative theory involves decision-making processes under conditions of uncertainty where there is no adequate knowledge of the market due to its latent and emerging nature. Effectuation has been used to examine various concepts in entrepreneurship, but there has been no real effort to apply it to the growth of small knowledge-intensive firms (SKIFs). This study, based on in-depth interviews with six SKIFs, highlights how effectuation can be applied to the growth of SKIFs and it examines how the four underlying principles of contingencies, affordable loss, strategic relationships and adaptation contribute to SKIF growth. In addition, elements of causation are also shown to be relevant, leading to the conclusion that the two models can be used jointly to achieve growth of SKIFs.

Firm growth can be seen as a driving and determinant factor for economical development and employment in Sweden and other counties. SMEs plays an important role and are bearing most of the economical growth and employment on their shoulders and represent 99,4 percent of all the firms registered in Sweden, which in return makes it important that they grow and develop. Every fifth firm established today is run by an immigrant entrepreneur and so far the immigrant entrepreneurs represent 14 percent of the firms in Sweden and most of these firms are considered as SMEs. The interest of immigrant entrepreneurship within academic research and media has increased during the last years and different studies have shown what impact immigrant entrepreneurs have on the Swedish society and how much they contribute to the Swedish economical growth and employment. A study done by Swedish Agency for Economic and Regional Growth (2010a) showed that immigrant entrepreneurs tend to have a more positive attitude towards firm growth than native entrepreneurs. Although immigrant entrepreneurs have a positive attitude towards firm growth there are some barriers to firm growth that they face which in return can prevent or slow down the firm growth. Strategies are important since they allow firms to achieve firm growth and business goals.    The aim of our study is to increase the understanding of strategies that immigrant entrepreneurs’ develop in order to achieve firm growth. Based on one previous study conducted by SCB (Efendic et al., 2012) studying firm growth and immigrant entrepreneurship, we have managed to identify a research gap that needs to be fulfilled. This thesis will contribute will relevant knowledge and data for entrepreneurs as well as individuals to get a deeper understanding of how immigrant entrepreneurs work in order to reach firm growth. The data collection and analysis of the research allowed us to be able to answer the research question; “How do immigrant entrepreneurs in Sweden develop strategies in order to reach firm growth in their business?” To carry on with the study and collect relevant data for the research, we took the direction of abductive approach with a qualitative research strategy.   The interviews and empirical findings consist of six different immigrant entrepreneurs based in Sweden. From the findings, the authors came across different strategies that are commonly used by immigrant entrepreneurs. Furthermore, internal and external factors and barriers provided in the literature also influenced the firm growth. It was really interesting to see that many of the most common prejudices that exist within immigrant entrepreneurship were false in this study. This is proved since none of the immigrant entrepreneurs limit their markets to the ethnical groups and most of the firms did not use the personal network in terms of family and friends when building up the staff base. Outsourcing was a strategy that used within many of the firms in order to continuously to reach firm growth. It was also interesting to see that the personal history of the entrepreneur had a huge impact on the firm growth and the business goals.

BACKGROUND Exploring, on the one hand, the literature stream of authenticity and brand authenticity, and on the other hand, that of firm growth, to further connect the two phenomena. AIM Researching whether firms can achieve both above-average industry growth and brandauthenticity METHODOLOGY The study entails 21 firms evolving in three industries (beer, cosmetic and food-processing). Brand authenticity is measured through a consumer survey, while growth is measured through a comparison of financial numbers in an official database (Amadeus). FINDINGS Companies can achieve both above-average industry growth rate and brand authenticity

Les trois études traitent du processus de croissance des entreprises, sa persistance, ainsi que du rôle de l’innovation dans la performance des entreprises. Dans la première étude, nous nous concentrons sur la persistance de la forte croissance des entreprises et examinons si ce modèle de croissance spécifique est associé à de meilleures capacités d’exploitation. La deuxième étude vise à explorer la relation entre la croissance et l’innovation, en tenant compte de la nature multidimensionnelle du processus d’innovation. Nous observons un large ensemble de variables d’innovation qui saisissent des sources différentes, des modes et types d’activités innovantes mises en œuvre au sein des entreprises. Dans le troisième essai, nous examinons le rôle de la persistance de l’innovation sur la persistance des performances en terme de croissance. / The three essays focus on the process of firm growth, its persistence, and on the role of innovation in affecting firm performance. In the first essay we concentrate on persistence of high-growth and investigate whether this peculiar growth pattern is associated with better operating capabilities. The second essay aims to explore the relationship between growth and innovation, taking into accountthe multidimensional nature of the innovation process. We provide a broad picture of the relationship between growth and innovation, by looking at a wide set of innovation variables that capture the different sources, modes and types of innovative activity undertaken within firms. In the third essay we examine the role of persistence of innovation on persistence of growth performance, assessing whether a systematic, rather than sporadic, engagement in innovation activities induces more structure in the process of firm growth.

This research explores the factors that impede the growth of retail home based enterprises in South Africa. The potential contribution of home based micro and small enterprises (MSEs), or Spaza shops to generating income and employment to people in the informal sector of the economy is becoming increasingly recognised. This paper provides the primary data which consists of a non-random sample of 47 Spaza shop owners and managers in the four different areas (old establishments, new establishments, informal and reconstruction and development programme (RDP)) in the township of Mamelodi, applying a quantitative research methodology. The level of human capital, gender, and entrepreneurial mindset of the proprietor are found to have an inverse relationship to the firm’s growth. Key results of the research are that women owners tend to struggle to grow their businesses given the temptation to direct the earnings from the home based business to the needs of the household, and Spaza shops tend to sell the same, if not identical, products as competitors thereby gaining no competitive advantage necessary for growth. / Dissertation (MBA)--University of Pretoria, 2011. / Gordon Institute of Business Science (GIBS) / unrestricted

Food processing micro- and small-scale enterprises (MSEs) play an important role in the national economic development of Tanzania. Though many of them have great growth potential, they face a number of constraints hindering further development, and large amounts of cooking oil are imported each year. The aim of thesis has therefore been to identify and analyse the different factors affecting these MSEs in order to find out which the major growth challenges are. The case study is mainly based on individual semi-structured interviews with sunflower oil processors and farmers in Babati districts, conducted in February and March 2016, and earlier research and studies on the topic of MSE growth make up the theoretical framework used for analysis of the data. The findings show that there are indeed numerous challenges facing these processors, and the major constraint was found to be lack of capital; an issue causing or worsening a majority of the other challenges at hand. Other problems are related to raw material, equipment & electricity for processing, regulations, market accessibility, and competition. These obstacles need to be overcome in order to enable the industry's expansion within and outside of Tanzania, and further research is recommended.

This thesis consists of a summary and five self-contained papers addressing dynamics of firms in the Swedish wholesale trade sector. Paper [1] focuses upon determinants of new firm formation in the Swedish wholesale trade sector, using two definitions of firms’ relevant markets, markets defined as administrative areas, and markets based on a cost minimizing behavior of retailers. The paper shows that new entering firms tend to avoid regions with already high concentration of other firms in the same branch of wholesaling, while right-of-the-center local government and quality of the infrastructure have positive impacts upon entry of new firms. The signs of the estimated coefficients remain the same regardless which definition of relevant market is used, while the size of the coefficients is generally higher once relevant markets delineated on the cost-minimizing assumption of retailers are used. Paper [2] analyses determinant of firm relocation, distinguishing between the role of the factors in in-migration municipalities and out-migration municipalities. The results of the analysis indicate that firm-specific factors, such as profits, age and size of the firm are negatively related to the firm’s decision to relocate. Furthermore, firms seems to be avoiding municipalities with already high concentration of firms operating in the same industrial branch of wholesaling and also to be more reluctant to leave municipalities governed by right-of-the- center parties. Lastly, firms seem to avoid moving to municipalities characterized with high population density. Paper [3] addresses determinants of firm growth, adopting OLS and a quantile regression technique. The results of this paper indicate that very little of the firm growth can be explained by the firm-, industry- and region-specific factors, controlled for in the estimated models. Instead, the firm growth seems to be driven by internal characteristics of firms, factors difficult to capture in conventional statistics. This result supports Penrose’s (1959) suggestion that internal resources such as firm culture, brand loyalty, entrepreneurial skills, and so on, are important determinants of firm growth rates. Paper [4] formulates a forecasting model for firm entry into local markets and tests this model using data from the Swedish wholesale industry. The empirical analysis is based on directly estimating the profit function of wholesale firms and identification of low- and high-return local markets. The results indicate that 19 of 30 estimated models have more net entry in high-return municipalities, but the estimated parameters is only statistically significant at conventional level in one of our estimated models, and then with unexpected negative sign. Paper [5] studies effects of firm relocation on firm profits of relocating firms, employing a difference-in-difference propensity score matching. Using propensity score matching, the pre-relocalization differences between relocating and non-relocating firms are balanced, while the difference-in-difference estimator controls for all time-invariant unobserved heterogeneity among firms. The results suggest that firms that relocate increase their profits significantly, in comparison to what the profits would be had the firms not relocated. This effect is estimated to vary between 3 to 11 percentage points, depending on the length of the analyzed period.

Using a unique dataset comprising information for (up to) 153 firms in the machine building sector in Belarus, we investigate the determinants of firm growth for an economy where state ownership of enterprises is widespread. We use panel data models based on generalizations of Gibrat's law, total factor productivity estimates and matching methods to assess the differences in firm growth between private and state-contolled firms. Our results indicate that labor hoarding and soft budget constraints play a particularly important role in explaining differences in performance between these two groups of firms.

This thesis examines to what extent the firm size influences on firm growth and their behaviour of Spanish manufactures and service industries between 1994 and 2002 from the stochastic growth theory. The study has not only responded to the need of considering firm size as a key variable for future firm growth, but it has also examined the impacts of different industries for the development of firms, the learning process and the impact of internal and external firm characteristics. The firm growth is the process affecting firms while they remain active in the market. While some theories justify the firm growth as an adjustment of size due to internal or external environment, others have justified the change of size as a response to luck factors.To analyse it we have based on Gibrat's Law or Law of Proportionate Effects. Gibrat's Law suggests that all firms have the same probability to grow independently of their size. Although the researcher's interest to analyse it there are some mix results in the literature and there are still some lacks in the literature. According to the empirical review of the Gibrat's Law, several are the results to be stood out. Firstly, the firm growth is a complex process affected by internal and external characteristics which may be due to deterministic or random factors. Secondly, there appear some outstanding lacks of empirical studies. On the one hand, there are few empirical studies analysing the service industries. On the other hand, there is a scarcity of researchers incorporating the spatial dimension in their analysis.Our results refuse Gibrat's Law both for manufactures and service industries and, more interestingly, those results do not vary when introducing the firm learning process in the market. In reference to the differences between each individual sector, there appear different growth behaviours depending on the industry. It is well known that the firm growth pattern depends on the characteristics of industry and our results show a different behaviour depending on the industry. Therefore, if we consider different sectors, the firm growth pattern presents a heterogeneous trend. Each industry has quite different technologies and perhaps different growth processes, which might explain the mixed nature of the results.The persistence of firm growth offers a dynamic approach to the growth pattern. The relationship between past and current growth rates have been another aspect related with Gibrat's Law. The persistence of firm growth is highly important for policy-makers and managers, who should consider the pattern driving firm growth in order to increase the profitability of their investments, the job creation and the economic growth. As it was expected, the effect of the persistence depends on the proximity of the growth. In other words, a positive growth will have more impact on the following period than two periods later. Related to the analysis of the presence of different equilibria of firm growth, our results show that there is a significant difference in growth between manufacturing and service sector firms which persist when controlling for other firm specific characteristics. Nevertheless, the introduction of the location variables generates that those different trends are not significant. In order to know how important the differentiation between manufactures and service industries is, we estimate Gibrat's Law for manufactures and service industries in separate equations. When we separate the estimation of both industries, our results accept that the equilibria are different including the locational variables.In reference to the determinants of firm growth, variables such as the territorial R&D and the growth of GDP have positive externalities to firm growth. On the other hand, the industrial diversity or specialisation present different results depending on the sector. Finally, barriers to entry such as capital intensity and minimum efficient size behave as barriers to grow. That means that sectors which are highly capital intensive, they will prevent firms from growing. Conversely, sectors with low barriers to entry have low barriers to grow. However, those barriers to grow may be surpassed with internal characteristics such as innovation, cooperation, increase of human capital, etc. / Aquesta tesis examina la influència de la dimensió de l'empresa en el creixement empresarial, així com el comportament de les manufactures i els serveis d'Espanya entre 1994 i 2002 des d'una perspectiva estocàstica. Aquesta tesis no només respon a la necessitat de considerar el tamany de l'empresa com una variable crucial per al futur de l'empresa sinó també les característiques sectorials, el procés d'aprenentatge i les característiques internes i externes. El creixement empresarial és el procés que afecta a les empreses mentre estan actives en el mercat. Mentre que algunes teories justifiquen el creixement de l'empresa com un procés d'ajust cap al tamany òptim, altres teories justifiquen el creixement a un conjunt de factors aleatoris. Per tal d'analitzar el creixement empresarial, ens basem en la Llei de Gibrat o Llei dels Efectes Proporcionals. Llei de Gibrat suggereix que totes les empreses tenen la mateixa probabilitat per créixer independentment del seu tamany. Tot i l'interès del tema, els resultats en la literatura empírica són contradictoris i existeixen encara alguns buits. D'acord amb la revisió empírica de la Llei de Gibrat, diferents resultants poden ser destacats. En primer lloc, el creixement empresarial és un procés complex que depén de característiques internes i externes que poden afecten de forma determinística o aleatòria. En segon lloc, hi ha varies buits en la literatura. Per una banda, pocs estudis empírica analitzen els serveis. Per altra banda, hi ha una escassetat d'investigadors que incorporen la dimensió locacional.Els nostres resultats refusen la Llei de Gibrat per les manufactures I els serveis i, a més a més, aquests resultats no varien quan introduïm el procés d'aprenentatge de l'empresa en el mercat. Quant a les diferències entre cada sector individual, apareixen comportaments de creixement diferents en funció de la indústria. És un fet conegut que el creixement de l'empresa depèn de les característiques de la indústria i els nostres resultats mostren un comportament diferent en funció del sector industrial. Per tant, cada indústria té diferents característiques tecnològiques i diferent processos de creixement, els quals poden explicar els resultats contradictoris de la literatura.La persistència del creixement empresarial ofereix una perspectiva dinàmica del creixement de l'empresa. La relació entre creixement passat i actual és un alter aspecte relacionat amb la Llei de Gibrat. La persistència del creixement empresarial és molt important per als agents públics i directors, els quals hauries de tenen compte el comportament que dirigeix el creixement empresarial per tal d'incrementar els beneficis de les seves inversions, la creació de l'ocupació i el creixement econòmic. Com era d'esperar, l'efecte de la persistència depèn de la proximitat temporal del creixement. En altres paraules, un creixement positiu tindrà més impacte en el període següent que dos períodes després. Quant a l'anàlisi de la presència de diferents equilibris de creixement empresarial, els nostres resultats mostren que hi ha una diferència significativa en el creixement entre els sectors manufacturers i els serveis la qual persisteix quan controlem per altres característiques específiques de l'empresa. No obstant, la introducció de les variables locacionals generata que aquesta tendència sigui no significativa. Per tal de saber com d'important és la diferenciació entre manufactures i serveis s'estima la Llei de Gibrat per a les indústries manufactureres i els serveis en equacions separades. En separar les estimacions d'ambdues indústries, els nostres resultats accepten l'existència de diferents equilibris quan s'inclouen les variables locacionals. Quant als determinants dels creixement empresarial, variables com la intensitat tecnològica territorial i el creixement del PIB presenten externalitats positives sobre el creixement empresarial. Per altra banda, la diversitat o especialització industrial tenen impactes diferents en funció del sector a analitzar. Finalment, barreres d'entrada com la intensitat del capital i el tamany mínim eficient es comporten com barreres al creixement. Això vol dir que sectors que són intensiu en capital dificultaran el creixement de les empreses. Pel contrari, sectors amb baixes barreres d'entrada tenen baixes barreres al creixement. No obstant, aquestes barreres al creixement poden ser superades amb característiques internes com la innovació, la cooperació, l'increment del capital humà, etc.