Gazelle Company

Gazelle Company

A gazelle company is a fast-growing enterprise that expands revenue rapidly over a sustained period. By the original, widely cited definition, a gazelle increases revenues by at least 20% annually for four consecutive years, starting from a revenue base of at least $100,000. Because the definition focuses on growth rate rather than size, gazelles can be small startups or scale into very large firms.

Key takeaways

• A gazelle grows revenue at least 20% per year for four years, beginning from a $100,000+ revenue base.
• Gazelles are major contributors to job creation and economic dynamism.
• They are common in technology but also appear in retail, apparel, food and beverage, and other growth industries.
• Rapid growth often slows after several years; some gazelles are acquired or displaced by larger competitors.

How gazelle companies work

The concept dates to economist David Birch, who showed that a small share of high-growth firms accounted for a large share of new jobs. Birch estimated that these fast growers made a disproportionate contribution to employment compared with large, established corporations and very small businesses.

Gazelles typically expand quickly by scaling sales, entering new markets, or innovating in product and distribution. Their rapid hiring and investment multiply economic effects across supply chains and local labor markets. However, sustaining very high growth is difficult: competitive pressures, market saturation, and managerial challenges commonly slow growth after several years.

Today the term “gazelle” is often used more loosely to describe any fast-growing company, even if it does not meet the strict numerical threshold.

Examples and outcomes

Gazelles follow different trajectories:
* Some continue growing and evolve into very large, dominant firms. Examples often cited include companies that started fast and later became industry leaders.
Others are acquired by larger firms—either because they offer complementary capabilities or because their growth attracts attention. Social apps and niche technology firms are frequent acquisition targets.
Many slow to single-digit growth as markets mature or competition intensifies.

Notable acquisition examples illustrate the latter path: popular startups have been integrated into larger platforms after gaining rapid traction.

Role in the economy

Gazelles are important engines of job creation and innovation. By expanding employment rapidly and introducing new products and business models, they drive economic renewal and productivity growth. Policymakers and investors often track fast-growing firms as indicators of entrepreneurial health and future employment trends.

Bottom line

Gazelle companies are defined by sustained, high revenue growth rather than by size. They play an outsized role in job creation and market innovation, but their rapid expansion is typically time-limited—many either mature into larger firms, are acquired, or see growth rates decelerate as competition and market realities set in.