Conditions for growth in one-person startups: A longitudinal study spanning eight years

In the European Union, one-person businesses (OPBs) are increasingly regarded as an important alternative to dependent employment. From an economic policy standpoint, the growth potential of such businesses is especially attractive. This paper analyzes the growth potential of OPBs by postulating five key groups of enterprise growth predictors: personal traits, resources, strategy, industry, and organizational structures and systems. The framework model was adapted to suit the specific circumstances of OPBs. The model was tested using a longitudinal data set comprising 188 OPBs which were observed over a period of eight years. At the end of the observation period, the OPBs included in the study had an average of 1.33 employees. The gender of the founder, capital requirements at the time of establishment, and growth strategy proved to be the most important predictors of growth. In addition, human capital resources also tended to have a positive impact. The traits of the person founding the business were not found to affect growth. In summary, it is possible to draw empirically reliable conclusions about growth potential on the basis of the seriousness of an OPB startup project.