Are SMEs large firms in miniature? Evidence from the growth of German SMEs

摘要

Based on German data between 1999 and 2007, we analyse the growth factors of SMEs and contrast them with those of large firms. Differences show up both in balance sheet and employment growth. While we confirm earlier results on inherent growth structures and the influence of firm age, we derive several new, complex growth effects that set SMEs apart: particularly ownership type and ownership structure play a distinctive role that may additionally interact with other variables affecting growth, such as, e.g., profitability or capital structure. As a consequence, the distinction - according to size - between SMEs and large firms may not be sufficiently meaningful unless combined with further information on firm governance and, preferably, also on age.