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The Survival and Growth of New Establishments in Sweden, 1987-1995

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  • Helena Persson

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    Abstract

    The aim of the study is to examine the survival of new establishments and to identify factors affecting their survival probability and their employment growth.This study uses a unique data set on all new establishments that were created in Sweden 1987 and 1988, with the exception of the construction industry. The results show among others that:(i) new establishments face a high risk of closing down, (ii) the probability of establishment survival increases with the age and size of the establishment,(iii) variables that are assumed to measure access to resources (being a part of a multi-unit firm,and being new due to merger or dispersal) have a positive effect on survival, (iv) the number of employees at the start- up year has a negative effect on the employment growth, and (v) demographic and educational factors are important in explaining survival and growth. Copyright Kluwer Academic Publishers 2004

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    File URL: http://hdl.handle.net/10.1007/s11187-004-3992-7
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 23 (2004)
    Issue (Month): 5 (October)
    Pages: 423-440

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    Handle: RePEc:kap:sbusec:v:23:y:2004:i:5:p:423-440

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    Web page: http://www.springerlink.com/link.asp?id=100338

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    1. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August.
    2. Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "Pattenrs Of Firm Entry And Exit In U.S. Manufacturing Industries," Papers 1-88-2, Pennsylvania State - Department of Economics.
    3. Tveteras, Ragnar & Eide, Geir Egil, 2000. " Survival of New Plants in Different Industry Environments in Norwegian Manufacturing: A Semi-proportional Cox Model Approach," Small Business Economics, Springer, vol. 14(1), pages 65-82, February.
    4. Rosa, Peter & Carter, Sara & Hamilton, Daphne, 1996. " Gender as a Determinant of Small Business Performance: Insights from a British Study," Small Business Economics, Springer, vol. 8(6), pages 463-78, December.
    5. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
    6. Bruderl, Josef & Preisendorfer, Peter, 1998. " Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-25, May.
    7. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
    8. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521465618, October.
      • Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, October.
    9. Brito, Paulo & Mello, Antonio S., 1995. "Financial constraints and firm post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 543-565, December.
    10. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
    11. Boeri, Tito & Bellmann, Lutz, 1995. "Post-entry behaviour and the cycle: Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 483-500, December.
    12. Honjo, Yuji, 2000. "Business failure of new firms: an empirical analysis using a multiplicative hazards model," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 557-574, May.
    13. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
    14. Boeri, Tito & Cramer, Ulrich, 1992. "Employment growth, incumbents and entrants : Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 545-565, December.
    15. Audretsch, David B. & Santarelli, Enrico & Vivarelli, Marco, 1999. "Start-up size and industrial dynamics: some evidence from Italian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 965-983, October.
    16. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
    17. Baldwin, John R. & Raffiquzzaman, Mohammed, 1995. "Selection Versus Evolutionary Adaptation: Learning and Post-entry Performance," Analytical Studies Branch Research Paper Series 1994072e, Statistics Canada, Analytical Studies Branch.
    18. Forsfält, Tomas, 1999. "The Effects of Risk Aversion and Age on Investments in New Firms," Research Papers in Economics 1999:18, Stockholm University, Department of Economics.
    19. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    20. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December.
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    Cited by:
    1. Andreas Koch & Jochen Späth & Harald Strotmann, 2012. "The Role of Employees for Post-Entry Firm Growth," IAW Discussion Papers 78, Institut für Angewandte Wirtschaftsforschung (IAW).
    2. Z. Whitman & T. Wilson & E. Seville & J. Vargo & J. Stevenson & H. Kachali & J. Cole, 2013. "Rural organizational impacts, mitigation strategies, and resilience to the 2010 Darfield earthquake, New Zealand," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 69(3), pages 1849-1875, December.
    3. Jean-Pierre Huiban, 2011. "The spatial demography of new plants: urban creation and rural survival," Small Business Economics, Springer, vol. 37(1), pages 73-86, July.
    4. Martin Andersson & Florian Noseleit, 2008. "Start-Ups and Employment Growth - Evidence from Sweden," Jena Economic Research Papers 2008-091, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
    5. Muhammad Arafat Noordin & Shahimi Mohtar, 2014. "Age: Does it Matter for Firms to Perform?," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(3), pages 252-260, March.
    6. Yanling Wang, 2010. "Exposure to FDI and New Plant Survival: Evidence in Canada," Carleton Economic Papers 10-05, Carleton University, Department of Economics.
    7. Nyström, Kristina, 2008. "Is Entrepreneurship the Salvation for Enhanced Economic Growth?," Working Paper Series in Economics and Institutions of Innovation 143, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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