Abstract

The main purpose of this study is to empirically examine whether the implications of the life cycle model hold on the growth path of a sample of Swedish micro firms. The study is based on a sample containing 22001 Swedish micro firms across six industries for the year 2007. Several methods are used to analyse the impact of the life stage and two control variables, size and industry, to analyse the impact on firm growth. The empirical results of the study confirm a clear pattern of the growth life-cycle process among Swedish micro firms. Young micro firms, generally, grow on average more than their older counterparts and as they age and develop, their growth rate decreases. Additionally, firm growth among firms of different sizes and in various industries still follows the general pattern of the total sample. Thus, it appears from the results that the growth rate of Swedish micro firms included in the sample follows a systematic and predictable pattern associated mainly with the life stage.

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