Frontiers in European Entrepreneurship Research
Edited by Robert Blackburn, Frédéric Delmar, Alain Fayolle and Friederike Welter
Chapter 9: The failure of hyper-growth firms: a study of the bankruptcy of French SMEs with high growth potential
The question of the growth of SMEs (small and medium enterprises) has become a concern of successive French governments. For decades, the French government has implemented policies to support companies with strong growth potential. However France has proportionally fewer “gazelles”, as defined by Birch (1979), than the US (Picart 2006). The label “gazelles”, launched in 2005 by the Ministry for SMEs and now replaced by the status of “Growth SMEs”, allows SMEs to benefit from annual tax reductions and the deferral of social contributions. To further promote business growth, the French public bank, OSEO, which focuses on innovative SMEs, has recently established a network of 2000 SMEs certified as “SME Excellence” whose growth perspectives are deemed the most promising. This certification allows these SMEs to benefit from increased awareness and a direct connection to funding agencies, clusters, and generally all public and private national or European economic actors. SMEs with high growth potential are also the main targets of the new Public Investment Bank founded by the French government in 2013. Moreover, the definition of the category of intermediate-sized firms, enacted by the Law of Modernization of the Economy in August 2008, is in line with this general trend. The implementation of policy measures designed to promote business growth, particularly by fostering the transition of SMEs into larger size classes, is recommended to increase the number of firms in this category.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.