The Determinants of Small Firm Growth in the Greek Manufacturing Sector

Abstract

The aim of this paper is twofold; first, to identify the variables that mostly affect rapid sales growth in Greek manufacturing small and medium sized enterprises (SMEs); second, to examine the potential influence upon business growth and performance outcomes of those variables representing enterprise and financial management characteristics of the Greek SMEs. The study utilizes panel data of a random sample of 143 firms from the manufacturing SMEs sector in Greece. Regression analysis is used to determine the explanatory factors of rapid sales growth. This paper is firstly addressing the Greek case and our results are in line with the findings of other empirical studies in the European Union (EU), thus, supporting the convergence hypothesis among member states in EU. Indeed, factors found to influence significantly manufacturing SMEs growth in Greece are profitability, liquidity, reliance on long-term debt, employee productivity, fixed

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