The Effects of Hyper Growth on Firm Profitability

Abstract

Although many scholars have suggested that firm growth creates employment, wealth, and broad economic development, no one has yet reviewed whether “hyper-growth” in sales (such as 500% to 30,000%) leads to profitability. Based on the Inc. 500 fastest-growing company database, this study uses a large sample size of 1,233 and found no correlation between growth rate and profitability.