Suzanne Mawson

Trigger points and high‐growth firms: A conceptualisation and review of public policy implications

Purpose – As a means of contributing to the literature surrounding the evolution and growth of firms, this paper seeks to outline the explanatory concept of growth trigger points. It aims to examine the forces that propel firms towards different stages of growth and argues that high‐growth firms (HGFs) often encounter important “trigger points” that can affect their growth capabilities. The papers main aim is to define, conceptualise and illustrate the role of trigger points in promoting rapid growth within businesses.Design/methodology/approach – The primary methodological approach used was intensive case study research of HGFs in Scotland. The case studies, 40 firms in total, were compiled using a mixed method research approach that included, inter alia, background desk research, firm interviews and interviews with business advisers.Findings – The research discovered that growth trigger points are extremely diverse and play a major role in shaping the growth trajectory of firms, and highlights three ma...

Targeted support for high growth firms: Theoretical constraints, unintended consequences and future policy challenges

High growth firms are now a major focus within enterprise policy. This paper provides a theoretically informed analysis of the rationale and effectiveness of targeted public sector support designed to develop these firms. Drawing on empirical research undertaken in the UK, this paper challenges the appropriateness of the theoretical assumptions embodied in these state-backed support instruments. It outlines the nature of these programmes and provides a critique of some of their inherent weaknesses, revealing that the assumptions underpinning these programmes are often flawed. The paper examines the limitations of their selection procedures, the thematic nature of support and exit dynamics. It found that offering early stage firms intensive levels of resources may have important (and detrimental) unintended consequences previously overlooked by policy makers. The paper offers some suggestions for how policy instruments could be better attuned to the needs of these growth-oriented firms.

Myth-busting and entrepreneurship policy: the case of high growth firms

Abstract Promoting high growth firms (HGFs) has become a strong fixation within enterprise policy. This is a debate article seeking to examine and challenge the mythology perpetuated by policy makers and embedded within high growth entrepreneurship policy frameworks. Within the article we argue that a number of distinctive ‘myths’ have become deeply embedded within these policy frameworks. Such myths have been built on misconceived preconceptions of HGFs, which has resulted in policy-makers taking a myopic view of these firms. A key aim of the paper is to highlight how false perceptions of HGFs translate into inappropriate policy interventions. The paper challenges some of the most commonly held myths about these firms (that they are predominantly young, small, high-tech, VC-backed, university spin-outs, who grow in an orderly organic fashion, operating similarly irrespective of location) and identifies a clear mismatch between how policy makers perceive HGFs and what they actually look like in reality. Suggestions for the design of future policy approaches are forwarded.

The geography of job creation in high-growth firms: the implications of 'growing abroad'

In recent years, there has been an upsurge of interest by policy makers in high growth firms. Interest in these dynamic firms has primarily been driven by their prodigious ability to create new employment. Despite this, very little is known about the complex corporate geographies of these firms and their internationalisation processes. Using quantitative and qualitative data, this paper explores this issue by examining Scottish high growth firms. High growth firms were found to adopt more aggressive forms of international expansion, such as overseas acquisitions, than their non-high growth firm counterparts. As a result of these complex growth processes, a large proportion of high growth firm employment growth is generated outside Scotland. The paper concludes that the regional development impact of high growth firms for small peripheral economies in the UK is more limited than originally envisaged. The implications of the study for further research and public policy are examined.

Working the crowd : improvisational entrepreneurship and equity crowdfunding in nascent entrepreneurial ventures

Equity crowdfunding has rapidly established itself as an important part of the funding landscape for nascent entrepreneurial ventures. To date, however, little is known about the nature of the demand for equity crowdfunding or its impact on recipient firms. This article draws on an interview-based study of entrepreneurs of 42 equity crowdfunded start-ups in the United Kingdom. The study found strong demand for this funding from these experimental and improvisational entrepreneurs within innovative, consumer-focused, early stage firms. Many entrepreneurs were classic ‘discouraged borrowers’ attracted by the ability to obtain finance quickly with relatively little diminution of their equity or autonomy. In terms of impact, equity crowdfunding seems to confer important intangible benefits to investee companies which amount to more than money. Given their strongly improvisational nature, the concept of entrepreneurial bricolage seems a suitable theoretical lens explicating the behavioural aspects of the entrepreneurs examined.

Entrepreneurial Acquisitions, Open Innovation and UK High Growth SMEs

Abstract This paper examines the dynamics of entrepreneurial acquisitions undertaken by UK high growth small and medium enterprises (SMEs). While entrepreneurial acquisitions are increasingly deployed by SMEs, little is known about their antecedents, motivational drivers and organisational outcomes. Drawing on detailed case study evidence from Scotland, the key factor found to be driving these acquisitions was the desire to augment and exploit technological complementarities between the acquiring and acquired firms. Acquisition can therefore be conceptualised as an advanced stage of the outside-in ‘open innovation’ strategies proactively used within these innovative SMEs. Firms executing this strategy typically have an acute propensity for risk, a desire for close customer engagement, effective business models and strong external orientation. The work suggests that greater attention should be paid within M&A theory to the dynamics of these types of smaller scale entrepreneurial acquisitions.