Comparing different measures of high-growth enterprises : a Canadian case study / Innovation, Science and Economic Development Canada, Small Business Branch, Sylvain Côté ; and Statistics Canada, Centre...: Iu188-127/2016E-PDF

“Despite the high interest associated with high-growth enterprises (HEGs) and their relationship with employment, there still exists a large heterogeneity in terms of methodologies designed to define and measure them. In light of different attempts in the economic literature, this paper will compare, using Canadian data, three approaches measuring high-growth enterprises based on employment: one developed jointly by the Organisation for Economic Development and Cooperation (OECD) and Eurostat, another one introduced by the U.S. Bureau of Labor Statistics (BLS), and one more based on a top decile approach measured in terms of a compound annual growth rate of employment. This paper will subsequently test the relationship between the definitions of these high-growth enterprises and the sales compound annual growth rate in order to assess in a different way the impact that high-growth enterprises have on economic performance and to see how the different measures relate to one another. By contrasting different approaches to defining high-growth enterprises, this study offers a comparative context allowing for the coverage of all size classes including micro-enterprises, while, at the same time, assessing the dynamic impact of growth across enterprise size and sector. Such an approach may be of particular interest to policy-makers who want to know which type of enterprise is experiencing growth during various economic cycles and within a national context"--Abstract, p. ii.

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