Do profitable start-up firms grow faster? Evidence from Colombia
This study explores the impact of profitability on the growth of start-up firms. Using data on start-up firms in Colombia, we examine the relationship between firm growth and profitability. We provide evidence that start-up firms with higher profitability increase their total assets. However, we fin...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Universidad Nacional de Colombia
2018-12-01
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| Series: | Cuadernos de Economía |
| Subjects: | |
| Online Access: | https://revistas.unal.edu.co/index.php/ceconomia/article/view/69123 |
| _version_ | 1811271762041634816 |
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| author | Yuji Honjo |
| author_facet | Yuji Honjo |
| author_sort | Yuji Honjo |
| collection | DOAJ |
| description | This study explores the impact of profitability on the growth of start-up firms. Using data on start-up firms in Colombia, we examine the relationship between firm growth and profitability. We provide evidence that start-up firms with higher profitability increase their total assets. However, we find little evidence that profitability positively affects sales growth for start-up firms. In contrast, the results provide support for the notion that profitability is derived from sales growth. Furthermore, we find that firm growth depends heavily on firm age during the start-up stage. |
| first_indexed | 2024-04-12T22:27:59Z |
| format | Article |
| id | doaj.art-09e998594ae0499cbd3a5ba852145a7f |
| institution | Directory Open Access Journal |
| issn | 0121-4772 2248-4337 |
| language | English |
| last_indexed | 2024-04-12T22:27:59Z |
| publishDate | 2018-12-01 |
| publisher | Universidad Nacional de Colombia |
| record_format | Article |
| series | Cuadernos de Economía |
| spelling | doaj.art-09e998594ae0499cbd3a5ba852145a7f2022-12-22T03:14:04ZengUniversidad Nacional de ColombiaCuadernos de Economía0121-47722248-43372018-12-01377572775410.15446/cuad.econ.v37n75.6912348027Do profitable start-up firms grow faster? Evidence from ColombiaYuji Honjo0Chuo UniversityThis study explores the impact of profitability on the growth of start-up firms. Using data on start-up firms in Colombia, we examine the relationship between firm growth and profitability. We provide evidence that start-up firms with higher profitability increase their total assets. However, we find little evidence that profitability positively affects sales growth for start-up firms. In contrast, the results provide support for the notion that profitability is derived from sales growth. Furthermore, we find that firm growth depends heavily on firm age during the start-up stage.https://revistas.unal.edu.co/index.php/ceconomia/article/view/69123GrowthProfitabilityStart-up. |
| spellingShingle | Yuji Honjo Do profitable start-up firms grow faster? Evidence from Colombia Cuadernos de Economía Growth Profitability Start-up. |
| title | Do profitable start-up firms grow faster? Evidence from Colombia |
| title_full | Do profitable start-up firms grow faster? Evidence from Colombia |
| title_fullStr | Do profitable start-up firms grow faster? Evidence from Colombia |
| title_full_unstemmed | Do profitable start-up firms grow faster? Evidence from Colombia |
| title_short | Do profitable start-up firms grow faster? Evidence from Colombia |
| title_sort | do profitable start up firms grow faster evidence from colombia |
| topic | Growth Profitability Start-up. |
| url | https://revistas.unal.edu.co/index.php/ceconomia/article/view/69123 |
| work_keys_str_mv | AT yujihonjo doprofitablestartupfirmsgrowfasterevidencefromcolombia |