Are SMEs large firms en miniature? Evidence from a growth analysis

Based on German data between 1999 and 2007, we analyze the growth factors of SMEs andcontrast them with those of large firms. Differences show up both in balance sheet and employmentgrowth. While we conrm earlier results on inherent growth structures and the inuence of firm age,we derive several new, complex growth effects that set SMEs apart: particularly ownership typeand ownership structure play a distinctive role that may additionally interact with other variablesaffecting growth, such as, e.g. protability or capital structure. As such, the distinction - accordingto size - between SMEs and large rms may not be suciently meaningful unless combined withfurther information on ownership type and structure and, preferably, also on firm age.