Growth determinants of small and medium-sized fitness enterprises: empirical evidence from Portugal

Based on a sample of 182 Small- and Medium-sized Enterprises (SMEs) of the fitness industry for the period 2004–2009, this paper studies the growth determinants of fitness SMEs in Portugal using the two-step estimation method. Small and young fitness SMEs grow more quickly, respectively, than large and old fitness SMEs. Internal finance, external finance and labour productivity are important determinants to increase growth of fitness SMEs, while the interest paid and the financial crisis since 2008 restrict growth of fitness SMEs. The financial crisis also has influence on the impact of financial determinants in fitness SMEs growth. The empirical evidence obtained in this study allows us to suggest important measures of economic policy to support fitness SMEs and make suggestions to owners/managers of fitness SMEs.