Fostering+the+Development+of+High-Growth+Companies


 * Fostering the Development of High-Growth Companies **

According with the research made by Kaufman Foundation in November 2009 showed high-growth small businesses represent only about 5 percent of total startups, making it important to determine how to spot and foster them. A key common characteristic is that growth is critically dependent on the entrepreneurs who start these companies; they are people on a mission, charismatic leaders who can inspire creativity and commitment from their staff. The core idea of fostering the development of high-growth companies is to build an army of entrepreneurs. Studies at the Kauffman Foundation show that over the last three decades new businesses five years of age or younger have been responsible for virtually all of our economy's net new jobs. If our national mantra is "create jobs," we have to look at entrepreneurs because they are the ones who historically have delivered with a disproportionate share of the disruptive innovations that really drive growth in our country. Examples of that are the automobile, the airplane, and the computer revolutions such as Facebook and Google that were brought to market by startups and have gone up and beyond and are still growing.

The age of these companies is highly correlated with their growth when it is highest. Generally, the most dramatic growth occurs after at least four years of existence—and coincidentally lasts about four years—before it slows again to a more typical pace for small businesses. Of course, some firms such as Google defy this pattern and continue to experience high growth for many years.