OECD WORKSHOP ON THE MEASUREMENT OF THE HIGH-GROWTH
ENTERPRISES
Paris, 19 November 2007
General Trends and Roles of High-Growth
Firms in the Polish Manufacturing Sector
1996 – 2006
Jerzy Cieślik
Leon Kozminski Academy of Entrepreneurship and Management,
Warsaw, Poland
Background of the Research Project
 Experiences with entrepreneurship education programs
 Apparent confusion regarding entrepreneurship and
SMEs in policymaking, research and education
 Focus on international context of growth
 Inward FDI
 Export sales
Parallel research project on internationalization of Polish firms
 Making policy recommendations
 Project started in 2007 - initial results available so far
2
Data Source and Initial Data Set Format
 Central Statistical Office of Poland - Micro data from the Annual Enterprise
Survey
 Included companies which submitted data for 2006 Survey
Operating within the manufacturing sector
10 or more persons employed
With full accounting system
15 096 firms in the core data set
 Data on employment, total sales and export sales of the 15 096 companies
derived prom the previous Surveys 1996 – 2005
Complete set of data 1996-2006 available for 5599 firms
Data on export sales available from 2002 onwards
3
Methodology
 Basically we follow new OECD conventions and definitions
 Distinction between current (HGC) and historic high growth (HGH)
HGC when X 2006/ X2003 > 1.728
HGH when Xn/Xn-3 > 1.728 for at least one out of seven historic observation periods
ending 1999 - 2005
 Export sales added as the third growth measurement variable in addition to
employment and total sales
 Domestic firms and foreign subsidiaries categorized separately
 Impact of HG firms measured by their contribution to employment, total
sales and export sales in the manufacturing sector in 2006
 Initial results: Some key conclusions
4
1. High-growth firms matter
Growth variable: Employment
Aggregate 2006/2003 ratio = 1,135
Domestic Foreign
firms
subsidiaries Total
I.
Growth variable: Total sales
Aggregate 2006/2003 ratio = 1,455
Domestic Foreign
firms
subsidiaries Total
Growth variable: Export sales
Aggregate 2006/2003 ratio = 1,687
Domestic
Firms
Foreign
subsidiaries Total
All firms
12 054
1 178,2
354,8
68,9
3 042
654,4
345,5
175,6
Number of firms
708
353
1 061
1 691
609
2 300
673
618
1 291
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
97,9
28,0
5,9
136,0
75,6
47,4
234,0
103,6
53,3
218,8
139,3
28,7
179,9
109,1
69,8
398,6
248,3
98,6
182,1
128,9
33,6
239,5
162,5
96,3
421,6
291,4
130,0
5,9%
11,6%
20,0% 15,2%
5,6%
20,3%
8,6%
8,3%
7,9%
8,5%
20,8%
21,9%
27,0%
15,5%
36,3%
48,8%
36,6%
47,0%
54,8%
23,0%
41,6%
53,1%
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
15 096 12 054
1 832,5 1 178,2
700,3
354,8
244,5
68,9
3 042 15 096
654,4 1 832,5
345,5
700,3
175,6
244,5
12 054
1 178,2
354,8
68,9
3 042 15 096
654,4 1 832,5
345,5
700,3
175,6
244,5
II. High growth firms
(2003–2006)
As % of all firms (I)
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
7,0% 14,0%
12,8%
14,8%
21,8%
18,6%
39,3%
41,7%
27,5%
31,6%
39,8%
21,8%
35,5%
40,3%
5
2. Foreign subsidiaries lead the high-growth segment
Growth variable: Employment
Aggregate 2006/2003 ratio = 1,135
Domestic Foreign
firms
subsidiaries Total
Growth variable: Total sales
Aggregate 2006/2003 ratio = 1,455
Domestic Foreign
firms
subsidiaries Total
Growth variable: Export sales
Aggregate 2006/2003 ratio = 1,687
Domestic
Firms
Foreign
subsidiaries Total
I. All firms
12 054
1 178,2
354,8
68,9
3 042
654,4
345,5
175,6
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
As % of all firms (I)
708
353
1 061
1 691
97,9
28,0
5,9
136,0
75,6
47,4
234,0
103,6
53,3
218,8
139,3
28,7
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
5,9%
11,6%
8,3%
7,9%
8,5%
20,8%
21,9%
27,0%
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
15 096 12 054
1 832,5 1 178,2
700,3
354,8
244,5
68,9
3 042 15 096
654,4 1 832,5
345,5 700,3
175,6 244,5
12 054
1 178,2
354,8
68,9
3 042 15 096
654,4 1 832,5
345,5 700,3
175,6 244,5
609 2 300
673
618 1 291
II. High growth firms
(2003–2006)
7,0% 14,0%
12,8%
14,8%
21,8%
18,6%
39,3%
41,7%
179,9
109,1
69,8
398,6
248,3
98,6
182,1
128,9
33,6
239,5
162,5
96,3
421,6
291,4
130,0
20,0% 15,2%
5,6%
20,3%
8,6%
15,5%
36,3%
48,8%
36,6%
47,0%
54,8%
23,0%
41,6%
53,1%
27,5%
31,6%
39,8%
21,8%
35,5%
40,3%
6
3. Export sales drive growth
Growth variable: Employment
Aggregate 2006/2003 ratio = 1,135
Domestic Foreign
firms
subsidiaries Total
Growth variable: Total sales
Aggregate 2006/2003 ratio = 1,455
Domestic Foreign
firms
subsidiaries Total
Growth variable: Export sales
Aggregate 2006/2003 ratio = 1,687
Domestic
Firms
Foreign
subsidiaries Total
I. All firms
12 054
1 178,2
354,8
68,9
3 042
654,4
345,5
175,6
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
As % of all firms (I)
708
353
1 061
1 691
97,9
28,0
5,9
136,0
75,6
47,4
234,0
103,6
53,3
218,8
139,3
28,7
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
5,9%
11,6%
8,3%
7,9%
8,5%
20,8%
21,9%
27,0%
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
15 096 12 054
1 832,5 1 178,2
700,3
354,8
244,5
68,9
3 042 15 096
654,4 1 832,5
345,5 700,3
175,6 244,5
12 054
1 178,2
354,8
68,9
3 042 15 096
654,4 1 832,5
345,5 700,3
175,6 244,5
609 2 300
673
618 1 291
II. High growth firms
(2003–2006)
7,0% 14,0%
12,8%
14,8%
21,8%
18,6%
39,3%
41,7%
179,9
109,1
69,8
398,6
248,3
98,6
182,1
128,9
33,6
239,5
162,5
96,3
421,6
291,4
130,0
20,0% 15,2%
5,6%
20,3%
8,6%
15,5%
36,3%
48,8%
36,6%
47,0%
54,8%
23,0%
41,6%
53,1%
27,5%
31,6%
39,8%
21,8%
35,5%
40,3%
7
4. Past high growth record matters
Growth variable: Employment
Aggregate 2006/2003 ratio = 1,135
Domestic Foreign
firms
subsidiaries Total
Growth variable: Total sales
Aggregate 2006/2003 ratio = 1,455
Domestic Foreign
firms
subsidiaries Total
Growth variable: Export sales
Aggregate 2006/2003 ratio = 1,687
Domestic
Firms
Foreign
subsidiaries Total
II. High growth firms
(2003–2006)
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
III. High growth firms with
past high growth
experience
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
As % of high growth firms
Number of firms
Employment (thousand)
Total sales (billion PLN)
Export Sales (billion PLN)
708
97,9
28,0
5,9
353
136,0
75,6
47,4
1 061
234,0
103,6
53,3
1 691
218,8
139,3
28,7
609
179,9
109,1
69,8
2 300
398,6
248,3
98,6
673
182,1
128,9
33,6
317
55,9
16,2
3,8
241
114,4
61,0
37,1
558
170,3
77,2
40,9
1 016
154,1
120,9
25,9
479
162,4
102,6
65,8
1 495
316,5
223,6
91,7
321
96,4
50,8
15,9
44,8%
57,1%
57,8%
64,2%
68,3%
84,1%
80,6%
78,3%
52,6%
72,8%
74,5%
76,7%
60,1%
70,4%
86,8%
90,1%
78,7%
90,3%
94,1%
94,2%
65,0%
79,4%
90,0%
93,0%
47,7%
53,0%
39,4%
47,2%
618
239,5
162,5
96,3
1 291
421,6
291,4
130,0
394
715
184,5 280,9
135,3 186,1
84,9 100,8
63,8%
77,0%
83,3%
88,2%
55,4%
66,6%
63,9%
77,6%
8
Some methodological an practical issues relating to
the use of gazelle concept
 turbulent formation period
 achieving initial stability – „business platform”
 apparent confusion as the term gazelle often used as an alternative
expression for high-growth firms
 risk of exclusion of „promising” high-growth firms
9
Concluding remarks
 OECD initiative to elaborate unified definitions and
conventions on high-growth firms crucial for:
Comparative research
Policy recommendations
Various support measures – injecting „growth hormones” to the nascent
and existing firms, e.g. through specialized training
 Diversity of analitical directions due to national
conditions and priorities
 Need for a list of indicative international priorities –
topics to be addressed first
10
Questions and Comments
11
Contact
Prof. Jerzy Cieslik
Leon Kozminski Academy of Entrepreneurship and
Management
Jagiellonska 59
03-301 Warsaw, Poland
Tel +48 502 030 030
E-mail: [email protected]
www.cieslik.edu.pl
12