jerzy cieślik leon kozminski academy of entrepreneurship and management, warsaw, poland
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OECD WORKSHOP ON THE MEASUREMENT OF THE HIGH-GROWTH ENTERPRISES Paris, 19 November 2007 General Trends and Roles of H i gh -Growth Firms in the Polish Manufacturing Sector 1996 – 2006. Jerzy Cieślik Leon Kozminski Academy of Entrepreneurship and Management, Warsaw, Poland. - PowerPoint PPT PresentationTRANSCRIPT
OECD WORKSHOP ON THE MEASUREMENT OECD WORKSHOP ON THE MEASUREMENT OF THE HIGH-GROWTH OF THE HIGH-GROWTH ENTERPRISESENTERPRISES
Paris, 19 November 2007 Paris, 19 November 2007
General Trends and Roles of HGeneral Trends and Roles of Hiighgh-Growth -Growth Firms in the Polish Manufacturing Sector Firms in the Polish Manufacturing Sector
1996 – 20061996 – 2006
Jerzy Cieślik
Leon Kozminski Academy of Entrepreneurship and Management, Warsaw, Poland
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BackgroundBackground of the Research Project 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
Data Source and Initial Data Set Format 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 SurveyOperating within the manufacturing sector10 or more persons employedWith full accounting system15 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 firmsData on export sales available from 2002 onwards
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MethodologyMethodology
Basically we follow new OECD conventions and definitions
Distinction between current (HGC) and historic high growth (HGH)HGC when X 2006/ X2003 > 1.728HGH 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
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1. 1. HiHighgh-growth firms matter-growth firms matter
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Growth variable: Employment Aggregate 2006/2003 ratio = 1,135
Growth variable: Total sales Aggregate 2006/2003 ratio = 1,455
Growth variable: Export sales Aggregate 2006/2003 ratio = 1,687
Domestic firms
Foreign subsidiaries Total
Domestic firms
Foreign subsidiaries Total
Domestic Firms
Foreign subsidiaries Total
I. All firms
Number of firms 12 054 3 042 15 096 12 054 3 042 15 096 12 054 3 042 15 096 Employment (thousand) 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 Total sales (billion PLN) 354,8 345,5 700,3 354,8 345,5 700,3 354,8 345,5 700,3 Export Sales (billion PLN) 68,9 175,6 244,5 68,9 175,6 244,5 68,9 175,6 244,5
II. High growth firms (2003–2006) Number of firms 708 353 1 061 1 691 609 2 300 673 618 1 291 Employment (thousand) 97,9 136,0 234,0 218,8 179,9 398,6 182,1 239,5 421,6 Total sales (billion PLN) 28,0 75,6 103,6 139,3 109,1 248,3 128,9 162,5 291,4 Export Sales (billion PLN) 5,9 47,4 53,3 28,7 69,8 98,6 33,6 96,3 130,0
As % of all firms (I) Number of firms 5,9% 11,6% 7,0% 14,0% 20,0% 15,2% 5,6% 20,3% 8,6% Employment (thousand) 8,3% 20,8% 12,8% 18,6% 27,5% 21,8% 15,5% 36,6% 23,0% Total sales (billion PLN) 7,9% 21,9% 14,8% 39,3% 31,6% 35,5% 36,3% 47,0% 41,6% Export Sales (billion PLN) 8,5% 27,0% 21,8% 41,7% 39,8% 40,3% 48,8% 54,8% 53,1%
2. 2. Foreign subsidiaries lead the high-growth segmentForeign subsidiaries lead the high-growth segment
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Growth variable: Employment Aggregate 2006/2003 ratio = 1,135
Growth variable: Total sales Aggregate 2006/2003 ratio = 1,455
Growth variable: Export sales Aggregate 2006/2003 ratio = 1,687
Domestic firms
Foreign subsidiaries Total
Domestic firms
Foreign subsidiaries Total
Domestic Firms
Foreign subsidiaries Total
I. All firms
Number of firms 12 054 3 042 15 096 12 054 3 042 15 096 12 054 3 042 15 096 Employment (thousand) 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 Total sales (billion PLN) 354,8 345,5 700,3 354,8 345,5 700,3 354,8 345,5 700,3 Export Sales (billion PLN) 68,9 175,6 244,5 68,9 175,6 244,5 68,9 175,6 244,5
II. High growth firms (2003–2006)
Number of firms 708 353 1 061 1 691 609 2 300 673 618 1 291 Employment (thousand) 97,9 136,0 234,0 218,8 179,9 398,6 182,1 239,5 421,6 Total sales (billion PLN) 28,0 75,6 103,6 139,3 109,1 248,3 128,9 162,5 291,4 Export Sales (billion PLN) 5,9 47,4 53,3 28,7 69,8 98,6 33,6 96,3 130,0 As % of all firms (I)
Number of firms 5,9% 11,6% 7,0% 14,0% 20,0% 15,2% 5,6% 20,3% 8,6% Employment (thousand) 8,3% 20,8% 12,8% 18,6% 27,5% 21,8% 15,5% 36,6% 23,0% Total sales (billion PLN) 7,9% 21,9% 14,8% 39,3% 31,6% 35,5% 36,3% 47,0% 41,6% Export Sales (billion PLN) 8,5% 27,0% 21,8% 41,7% 39,8% 40,3% 48,8% 54,8% 53,1%
3. 3. Export sales drive growthExport sales drive growth
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Growth variable: Employment Aggregate 2006/2003 ratio = 1,135
Growth variable: Total sales Aggregate 2006/2003 ratio = 1,455
Growth variable: Export sales Aggregate 2006/2003 ratio = 1,687
Domestic firms
Foreign subsidiaries Total
Domestic firms
Foreign subsidiaries Total
Domestic Firms
Foreign subsidiaries Total
I. All firms
Number of firms 12 054 3 042 15 096 12 054 3 042 15 096 12 054 3 042 15 096 Employment (thousand) 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 1 178,2 654,4 1 832,5 Total sales (billion PLN) 354,8 345,5 700,3 354,8 345,5 700,3 354,8 345,5 700,3 Export Sales (billion PLN) 68,9 175,6 244,5 68,9 175,6 244,5 68,9 175,6 244,5
II. High growth firms (2003–2006)
Number of firms 708 353 1 061 1 691 609 2 300 673 618 1 291 Employment (thousand) 97,9 136,0 234,0 218,8 179,9 398,6 182,1 239,5 421,6 Total sales (billion PLN) 28,0 75,6 103,6 139,3 109,1 248,3 128,9 162,5 291,4 Export Sales (billion PLN) 5,9 47,4 53,3 28,7 69,8 98,6 33,6 96,3 130,0 As % of all firms (I)
Number of firms 5,9% 11,6% 7,0% 14,0% 20,0% 15,2% 5,6% 20,3% 8,6% Employment (thousand) 8,3% 20,8% 12,8% 18,6% 27,5% 21,8% 15,5% 36,6% 23,0% Total sales (billion PLN) 7,9% 21,9% 14,8% 39,3% 31,6% 35,5% 36,3% 47,0% 41,6% Export Sales (billion PLN) 8,5% 27,0% 21,8% 41,7% 39,8% 40,3% 48,8% 54,8% 53,1%
4. 4. Past high growth record mattersPast high growth record matters
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Growth variable: Employment Aggregate 2006/2003 ratio = 1,135
Growth variable: Total sales Aggregate 2006/2003 ratio = 1,455
Growth variable: Export sales Aggregate 2006/2003 ratio = 1,687
Domestic firms
Foreign subsidiaries Total
Domestic firms
Foreign subsidiaries Total
Domestic Firms
Foreign subsidiaries Total
II. High growth firms (2003–2006)
Number of firms 708 353 1 061 1 691 609 2 300 673 618 1 291 Employment (thousand) 97,9 136,0 234,0 218,8 179,9 398,6 182,1 239,5 421,6 Total sales (billion PLN) 28,0 75,6 103,6 139,3 109,1 248,3 128,9 162,5 291,4 Export Sales (billion PLN) 5,9 47,4 53,3 28,7 69,8 98,6 33,6 96,3 130,0 III. High growth firms with past high growth experience Number of firms 317 241 558 1 016 479 1 495 321 394 715 Employment (thousand) 55,9 114,4 170,3 154,1 162,4 316,5 96,4 184,5 280,9 Total sales (billion PLN) 16,2 61,0 77,2 120,9 102,6 223,6 50,8 135,3 186,1 Export Sales (billion PLN) 3,8 37,1 40,9 25,9 65,8 91,7 15,9 84,9 100,8 As % of high growth firms Number of firms 44,8% 68,3% 52,6% 60,1% 78,7% 65,0% 47,7% 63,8% 55,4% Employment (thousand) 57,1% 84,1% 72,8% 70,4% 90,3% 79,4% 53,0% 77,0% 66,6% Total sales (billion PLN) 57,8% 80,6% 74,5% 86,8% 94,1% 90,0% 39,4% 83,3% 63,9% Export Sales (billion PLN) 64,2% 78,3% 76,7% 90,1% 94,2% 93,0% 47,2% 88,2% 77,6%
Some methodological an practical issues relating to Some methodological an practical issues relating to the use of the use of gazellegazelle concept 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
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Concluding remarksConcluding remarks
OECD initiative to elaborate unified definitions and conventions on high-growth firms crucial for:
Comparative researchPolicy recommendationsVarious 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
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Questions and CommentsQuestions and Comments
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ContactContact
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
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