The development of high-growth agribusinesses in the aftermath of the 2008 financial crisis. (20th September 2019)

• Record Type: Journal Article
• Authors: Arimany-Serrat, Nuria; Tarrats-Pons, Elisenda; Nylund, Petra
• Is Part Of: World review of entrepreneurship, management and sustainable development. Volume 15:Number 4(2019)
• Page Start: 441
• Page End: 459
• Publication Date: 2019-09-20
• Subjects: economic and financial analysis -- high-growth firms -- agribusinesses -- profitability -- financial return -- Catalonia; Sustainable development -- Periodicals; Entrepreneurship -- Periodicals; 338.04
• Languages: English
• ISSNs: 1746-0573

Abstract

The impact of the 2008 financial crisis has led the region of Central Catalonia, Spain, to rely even more on agribusiness. This industry represents a large share of employment and sales income in the region. In addition, high-growth firms drive a disproportionate share of regional economic growth. We therefore analyse the economic and financial health of high-growth agribusinesses in Central Catalonia during the period 2008-2013. We find that these firms exercise frugal financial management during the studied years, and that their economic profitability is a function of their solvency and the employee productivity. We conclude by discussing the implications of these findings.