What’s a Gazelle company?

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A springbok company defines a new business that grows rapidly over four years, generating annual sales of $1 million or more per year. The company is publicly traded and shows consistent growth and a healthy financial outlook for the future. In some areas, a springbok business starts with fewer than a dozen employees, but quickly creates new job opportunities as it expands. Growth normally occurs within the start-up company and not through acquisitions or mergers between companies.

One study found that gazelles account for only about one percent of all businesses, but account for approximately 10 percent of new job opportunities each year. The research used statistics and databases that measure the number of new jobs created in large and small companies. The average Gazelle company hired 88 new employees per year, while larger, more established companies employed anywhere from 20 to 250 new workers annually. Some established companies hired only two or three new workers within the study period.

Some economic analysts have proposed government support for individual entrepreneurs to help them start a new company. During an economic downturn, job growth associated with a gazelle company’s rapid expansion can affect recovery efforts, according to the study. Making it easier to get finance and ease government regulations for new businesses can create more gazelles to stimulate the economy. Tax incentives can also encourage small business growth.

A springbok company sometimes evolves from foreign investment, especially in the technology sector. Easing or expanding the business visa process can attract foreign investors with the money to start a business. Another recommendation that could result in a new gazelle company involves supporting university research with commercial potential.

The term gazelle company began in the United States and spread internationally to describe a start-up company with an annual growth rate of 20% or more in sales. This rapid growth can come with challenges meeting customer demand and properly training new employees in a small business. A springbok company will typically review its business strategy and organizational structure as it grows to remain successful.

The leaders of these companies suggest creating a culture of innovation and finding a niche market for the goods or services offered. Many successful startups seek creativity when hiring employees and capitalizing on their new ideas. They can create products to help midsize businesses become more productive and profitable when revenue declines.

Asset Smart.

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