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Small Business Growth Characteristics

Small Business Growth Characteristics Financial characteristics are presented for small firms whose sales increased at a rate greater than the inflation rate over the period 1974–1979. It is noted that these characteristics differ somewhat depending on whether they were a retailer, manufacturer or wholesaler. A growing small firm is generally characterized as one which increases its leverage, decreases its liquidity and incurs a heavy investment in operational assets. Interestingly, it is also shown that these same characteristics, if taken to extremes, are typical of the failed companies in the sample. The reward of growth is success; the risk of growth is failure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Small Business SAGE

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Publisher
SAGE
Copyright
© 1981 SAGE Publications
ISSN
0363-9428
eISSN
1540-6520
DOI
10.1177/104225878100500307
Publisher site
See Article on Publisher Site

Abstract

Financial characteristics are presented for small firms whose sales increased at a rate greater than the inflation rate over the period 1974–1979. It is noted that these characteristics differ somewhat depending on whether they were a retailer, manufacturer or wholesaler. A growing small firm is generally characterized as one which increases its leverage, decreases its liquidity and incurs a heavy investment in operational assets. Interestingly, it is also shown that these same characteristics, if taken to extremes, are typical of the failed companies in the sample. The reward of growth is success; the risk of growth is failure.

Journal

American Journal of Small BusinessSAGE

Published: Jan 1, 1981

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