What Is a High-Growth Business?

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What Is a High-Growth Business?

Jonathan Yob Tampa

· Business

Jonathan Yob, founder and president of Tampa, Florida-based organizations JAY Management Corporation and the Yob Family Foundation, is an award-winning philanthropist and entrepreneur. Through JAY Management, Jonathan Yob and his team provide asset management services throughout the Tampa Bay and Central Florida area that focus on such things as high-growth business assets.

Determining what constitutes a high-growth business is challenging, since there is no single established definition. Perhaps the first was by David Birch, who coined the term “high-growth” in a 1979 report. According to Birch, high-growth businesses start with at least $1 million in revenue and grow by 20 percent every year for a period of four years. Based on this, the business doubles its revenue over that period.

The Organization for Economic Cooperation and Development (OECD) also has a definition for high-growth businesses which is more widely accepted today. This keeps the idea that such a company grows by 20 percent every year. However, this growth occurs over a period of three consecutive years and can include either turnover or employee growth. Further, high-growth businesses need at least 10 employees at the start of the growth period.

Achieving this 20 percent annual growth rate requires unique elements that many such businesses share. These include high personal productivity, a sound business model, operational excellence, and strong leadership. Such elements ensure high-growth businesses are continually improving and finding innovative solutions to obstacles.