FAST-GROWING COMPANIES FROM TIMIS COUNTRY: DOES THE AGE MATTER?

Abstract

This paper examines the relation between the company’s age and its growth and analyses the influence of age on growth by studying a specific group of companies, namely fast-growing companies from the Timis County, Romania. We have studied the performance of the fast-growing companies in the period of 2010-2013 using the STATA IC 12 software application. A linear regression analysis model with two variables was used. The dependent variable used was the rapid growth of the company, measured by the growth rate of the turnover and the independent variable used was the age of the company, measured by the number of years. The model was tested using the number of employees as a control variable. This paper’s conclusion is in agreement with many other findings from the literature in this subject. The presented results show that the turnover growth rates in the Romanian fast-growing companies tend to drop from one year to another, as the companies grow older.

Keywords

• fast-growing companies
• age
• management
• entrepreneurship