The Growth of Firms: A Balanced Perspective

An introductory-level course by WasedaX

Course Description

"The Growth of Firms: A Balanced Perspective" is an introductory-level course offered by WasedaX that provides a comprehensive exploration of firm growth dynamics. This course goes beyond the hype surrounding unicorn companies to present a balanced, data-driven view of business population structures and growth patterns. Students will gain insights into the characteristics and determinants of firm growth, learn to apply powerful models like Gibrat's Law and Gambler's Ruin Theory, and critically evaluate various theories of firm growth. The course combines video lectures, background readings, interactive discussions, polls, and quizzes to provide a rich learning experience.

What You Will Learn

  • Understand and explain distributions of firm size, age, productivity, and growth rates
  • Apply and interpret models such as Gibrat's Law and Gambler's Ruin Theory
  • Develop a comprehensive overview of firm growth determinants based on research findings
  • Critically compare and evaluate different theories of firm growth
  • Gain a balanced perspective on industry dynamics and firm growth patterns

Prerequisites

No specific prerequisites are required. While the course may include specialized terminology related to business and mathematics, these concepts will be explained throughout the course.

Course Content

  • Fundamentals of industry structure and firm demographics
  • The framework of firm growth
  • Gibrat's Law and its implications for firm growth
  • Extensions and applications of Gibrat's Law
  • Determinants of firm growth, including size and age
  • Other predictors of firm growth
  • Various theories of firm growth
  • Strategies and processes for firm growth

Who This Course Is For

  • Students pursuing careers in business and economics
  • Business analysts and economists
  • Investors and financial sector professionals
  • Public policy professionals
  • Aspiring entrepreneurs
  • Anyone interested in understanding the dynamics of firm growth and industry structures

Real-World Applications

  • Conducting market analysis and industry research
  • Making informed investment decisions
  • Developing growth strategies for businesses
  • Formulating evidence-based public policies
  • Enhancing critical thinking and analytical skills for business decision-making
  • Improving forecasting abilities for business and economic trends
  • Understanding the challenges and opportunities in entrepreneurship

Syllabus

WEEK 1: Fundamentals of Industry Structure

  1. Week 1 Introduction
  2. Firm Demographics
  3. The Framework of Firm Growth
  4. Week 1 Test

WEEK 2: Gibrat's Law and Its Implications

  1. Week 2 Introduction
  2. Gibrat's Law
  3. Extending Gibrat's Law
  4. Week 2 Test

WEEK 3: Determinants of Firm Growth

  1. Week 3 Introduction
  2. Size and Age
  3. Other Predictors of Firm Growth
  4. Week 3 Test

WEEK 4: Theories of the Growth of Firms

  1. Week 4 Introduction
  2. Theories of Firm Growth
  3. Strategies and Processes of Firm Growth
  4. Week 4 Test

This course offers a unique opportunity to gain a well-rounded understanding of firm growth dynamics, combining theoretical knowledge with practical insights. By the end of the course, students will be equipped with valuable tools to analyze and predict firm growth, a skill highly sought after in today's dynamic business environment.