High growth businesses and low growth environment in Bangalore: a study of firm level data for 1998-2003

Abstract

This paper focuses on the emergence of high growth IT businesses in Bangalore. Prior research had identified factors that held back Bangalore businesses and inhibited their growth. An analysis of new firm formation and employment growth in Bangalore over a five year period between 1998 and 2003, indicate that the IT sector employment grew through expansion and growth of existing firms. This paper highlights the mitigating influences that helped Bangalore’s IT businesses overcome the barriers to growth. The significant contributions of this paper are the inferences drawn from extensive firm level data in addition to assembling of the data itself.