Abstract
In this section, we look more closely at the relationship of growth and profit and why, despite the seeming ignoring of profit in the discussion of growth entrepreneurship it remains ultimately of critical importance. To start this discussion, it is appropriate to return to one of the intellectual founders of the field of entrepreneurship, Schumpeter.
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Notes
- 1.
EBIT = (100*Earnings before interest and taxes/revenues). See Appendix II. In addition to EBIT, earnings before interest and taxes, depreciation and amortization measure (EBIT-DA) is also often preferred.
- 2.
It is acknowledged that from a legal perspective the interpretation of the law is not as clear as presented here. No legal claims are suggested, but rather the law is presented here in order to validate the argument of profits being a fundamental part of any firm, and to show that it is of great importance to deliver profits in ways found most beneficial from the views of both the firm and its shareholders.
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Brännback, M., Carsrud, A., Kiviluoto, N. (2014). Growth and Profit. In: Understanding the Myth of High Growth Firms. SpringerBriefs in Business. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-9457-7_5
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