Gazelle Companies: What Is So Special About the 20% Threshold?

Authors

Olga Kosheleva, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

7-2015

Comments

Technical Report: UTEP-CS-15-62

Published in Journal of Innovative Technology and Education, 2015, Vol. 2, No. 1, pp. 43-46.

Abstract

In business analysis, a special emphasis is placed on "gazelles", companies that grow by at least 20% per year for several years (usually four). While this 20% threshold is somewhat supported by empirical research, from the theoretical viewpoint, it is not clear what is so special about this value. In this paper, we provide a possible explanation for this empirical fact.