Job creation in firms – does Finland lack gazelles?
Vanhala, Juuso; Virén, Matti (23.06.2016)
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201606271354
The establishment and growth of new firms is important for job creation, but companies are not all the same. A small number of firms create a significant portion of new jobs, while in a large portion of firms job creation remains limited or the number of jobs is actually decreasing. New firms include a relatively high number of ‘gazelles’, firms that increase the number of jobs at a rapid pace. At the same time, however, only a small portion of new firms survive the ‘valley of death’ of the first years following entry. It is difficult to identify rapidly growing businesses in advance, and high growth at the outset does not typically predict high growth in the future.