JED, Vol. 20, No.3, December 2018, pp. 71-87
Determinants of Firm Growth: Evidence from Vietnamese Small and Medium Sized Manufacturing Enterprises
Abstract:Using data from a survey of small and medium scale manufacturing enterprises (SMEs) in
Vietnam, this study investigates the impact of firm and owner characteristics on firm growth.
The results reveal that firm size has a negative effect on firm growth, suggesting the invalidity of
Gibrat’s Law. Moreover, the results indicate the dependence of firm growth on firm and owner
attributes. Regarding firm characteristics, leverage, labor quality, training and export activities
all enhance growth, while firm age is negatively associated with the growth of SMEs. As for
owner characteristics, the results indicate a negative relationship between owner age and firm
growth. Furthermore, female-headed firms have higher growth than male-headed firms; and
highly educated owners create higher growth than those with lower levels of education.
Keywords:Firm attributes; owner characteristics; firm growth; Gibrat’s Law; SME; Vietnam