IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v10y1998i3p189-202.html
   My bibliography  Save this article

The survival of firms over the critical first 3 years and the local environment

Author

Listed:
  • Hannu Littunen
  • Esa Storhammar
  • Tuomo Nenonen

Abstract

The aim of this study was to examine the success of new firms in different environments and the factors affecting it. In this study the criterion of a successful firm is that of continued functioning, and firms are divided into two groups: those that have closed down and those that continue after the critical first 3 years. As the basis for a regional analysis the authors look first at the differences between these two groups in terms of the characteristics of firms and entrepreneurs. The regional distribution of the firms that closed down is then examined, followed by an analysis of the regional differences in the characteristics of all the firms and entrepreneurs studied. Regional differences were found in the closing down of firms as well as in the factors explaining the continuation/closing down of business activities. Explanations for the success of firms were found in the characteristic of the entrepreneur, the success of the start--up phase, and in the characteristics of the firm itself. The effects of the environment on firms can thus be seen through these variables.

Suggested Citation

  • Hannu Littunen & Esa Storhammar & Tuomo Nenonen, 1998. "The survival of firms over the critical first 3 years and the local environment," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(3), pages 189-202, January.
  • Handle: RePEc:taf:entreg:v:10:y:1998:i:3:p:189-202
    DOI: 10.1080/08985629800000011
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08985629800000011
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/08985629800000011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Calá, Carla Daniela, 2015. "Firm dynamics in developing countries: a single policy for all regions?," Nülan. Deposited Documents 2650, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Brouwer Aleid & Pellenbarg Pieter, 2011. "The Importance of Place in Corporate Identity an Investigation on the Presence of Old Dutch Firms on the Internet," European Spatial Research and Policy, Sciendo, vol. 18(2), pages 79-94, November.
    3. Harold Fried & Loren Tauer, 2015. "An entrepreneur performance index," Journal of Productivity Analysis, Springer, vol. 44(1), pages 69-77, August.
    4. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2017. "Regional Determinants of Exit Across Firms’ Size: Evidence from Argentina," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(6), pages 768-785, December.
    5. Miettinen Marika Rosanna & Littunen Hannu, 2013. "Factors Contributing to the Success of Start-Up Firms Using Two-Point or Multiple-Point Scale Models," Entrepreneurship Research Journal, De Gruyter, vol. 3(4), pages 449-481, June.
    6. Calá, Carla Daniela, 2018. "Sectoral and regional determinants of firm dynamics in developing countries: evidence for low-, mediumand high-tech manufacturing in Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Savvas Papagiannidis & Feng Li & Henry Etzkowitz & Michael Clouser, 2009. "Entrepreneurial networks: A Triple Helix approach for brokering human and social capital," Journal of International Entrepreneurship, Springer, vol. 7(3), pages 215-235, September.
    8. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2017. "Regional determinants of exit across firms' size: evidence from a developing country," Nülan. Deposited Documents 2548, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    10. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2014. "The determinants of exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 1976, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    11. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.
    12. Franczak, Jennifer & Gyensare, Michael A. & Lanivich, Stephen E. & Adomako, Samuel & Chu, Irene, 2024. "How and when does founder polychronicity affect new venture performance? The roles of entrepreneurial orientation and firm age," Journal of Business Research, Elsevier, vol. 172(C).
    13. Marco Cantamessa & Valentina Gatteschi & Guido Perboli & Mariangela Rosano, 2018. "Startups’ Roads to Failure," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    14. Rui Baptista & Murat Karaöz & Joana Mendonça, 2014. "The impact of human capital on the early success of necessity versus opportunity-based entrepreneurs," Small Business Economics, Springer, vol. 42(4), pages 831-847, April.
    15. Ali Smida & Nabil Khelil, 2010. "Repenser l’échec entrepreneurial des petites entreprises émergentes," Post-Print halshs-02505930, HAL.
    16. Carla Calá & Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2015. "The determinants of exit in a developing country: core and peripheral regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 927-944, May.
    17. Sahar Ayadi & Sonia Zouari Ghorbel, 2018. "Relevance of the Mann Whitney Wilcoxon test in the survival analysis of newly established companies in Tunisia (Case of the sfax region)," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-20, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:10:y:1998:i:3:p:189-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.