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Stylized life cycle of high-growth companies in Russia
https://doi.org/10.32609/0042-8736-2022-3-77-97
Abstract
The article is devoted to the empirical identification and analysis of the stylized life cycle of high-growth companies (gazelle firms, HGFs). The stylized cycle is calculated in real time by summarizing the dynamics of the main indicators of 11 generations of HGFs (7743 firms). On the basis of this analysis, the effects not previously described were established. (1) The presence of a trigger point at which a change in the business model causes a catastrophic deterioration in the main indicators, but at the same time opens the way to rapid growth in a new direction (the phenomenon of internal creative destruction). (2) Outstripping growth in profitability compared to revenue in the midst of a phase of rapid growth of HGFs. This fact explains the mechanism of self-financing of the rapid growth stage in the conditions of well-known discrimination of HGFs by external investors. (3) Preservation of increased investment activity of gazelles after the end of the stage of rapid growth. The high level of investment shows that ex-HGFs are making real efforts to resume growth and, therefore, have the potential as objects of state support.
Keywords
high-growth companies,
HGFs,
gazelles,
stylized facts,
life cycle of the company,
trigger point,
creative destruction
JEL: D22, D23, L21, O12
About the Authors
E. I. Baranova
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
Elena I. Baranova
Moscow
Andrei Y. Yudanov
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
Andrei Y. Yudanov
Moscow
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For citations:
Baranova E.I., Yudanov A.Y. Stylized life cycle of high-growth companies in Russia. Voprosy Ekonomiki. 2022;(3):77-97. (In Russ.) https://doi.org/10.32609/0042-8736-2022-3-77-97
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