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Are young SMEs' survival determinants different? Empirical evidence using panel data

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  • Paulo Ma�as Nunes
  • Zélia Serrasqueiro

Abstract

Based on two subsamples of Small and Medium-sized Enterprises (SMEs), 495 young SMEs and 1350 old SMEs, using probit regressions, we investigate whether the survival determinants of young SMEs are different from those of old SMEs. The multiple empirical evidence obtained allows us to conclude that the survival determinants of young SMEs are considerably different from those of the old SMEs: (1) determinants related to scale effects, financial situation and macroeconomic situation are of greater relative importance in explaining young SMEs' survival; and (2) a determinant related to technological intensity is of greater relative importance in explaining old SMEs' survival. The results let us provide different guidelines for economic policy in general, and industrial policy in particular, in support of young and old SMEs.

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File URL: http://hdl.handle.net/10.1080/13504851.2011.607112
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 19 (2012)
Issue (Month): 9 (June)
Pages: 849-855

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Handle: RePEc:taf:apeclt:v:19:y:2012:i:9:p:849-855

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