IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v20y2013i8p754-757.html
   My bibliography  Save this article

Survival of micro-enterprises: Does public seed financing work?

Author

Listed:
  • Rodrigo Fuentes
  • Jorge Dresdner

Abstract

We estimated a hazard function for the duration of micro-enterprises after they had been subject to a public seed financing programme in southern Chile. The programme aims to encourage innovative new firms and uses sponsors to support and follow-up on the benefiting firms. Using an administrative database, specially recovered for this purpose, we were able to follow a sample of 76 firms throughout a period of 9 years. This article offers new evidence about how a firm promotion subsidy programme works in a medium developed country. The results indicate that the amount of funds granted increases survival time. In contrast, the type of support organization does not seem to affect the duration of the micro-enterprises, while the sponsors' individual characteristics do seem to have an impact on survival. Thus, the public institution should periodically assess the sponsors' performance as part of the programme evaluation.

Suggested Citation

  • Rodrigo Fuentes & Jorge Dresdner, 2013. "Survival of micro-enterprises: Does public seed financing work?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(8), pages 754-757, May.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:8:p:754-757
    DOI: 10.1080/13504851.2012.741673
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2012.741673
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2012.741673?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.

    References listed on IDEAS

    as
    1. Eric J. Bartelsman & John Haltiwanger & Stefano Scarpetta, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," Tinbergen Institute Discussion Papers 04-114/3, Tinbergen Institute.
    2. Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-236, April.
    3. Giorgia Giovannetti & Giorgio Ricchiuti & Margherita Velucchi, 2011. "Size, innovation and internationalization: a survival analysis of Italian firms," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1511-1520.
    4. Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2007. "The effects of government grants on plant survival: A micro-econometric analysis," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 701-720, August.
    5. P. Holmes & A. Hunt & I. Stone, 2010. "An analysis of new firm survival using a hazard function," Applied Economics, Taylor & Francis Journals, vol. 42(2), pages 185-195.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Padilla-Angulo, Laura & Lasarte-López, Jesús Miguel & Pozo, Pedro Caldentey Del, 2023. "Policy evaluations of microenterprise business support services in Latin America: A systematic review," Evaluation and Program Planning, Elsevier, vol. 97(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paulo Maças Nunes & Z�lia Serrasqueiro, 2012. "Are young SMEs' survival determinants different? Empirical evidence using panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(9), pages 849-855, June.
    2. Ornella Wanda Maietta & Fernanda Mazzotta, 2018. "Firm Survival and Innovation: Knowledge Context Matters!," CSEF Working Papers 496, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Rafaelita M. Aldaba, . "Understanding the Relationship Between Globalization and Survival of Philippine SMEs," Chapters, in: Chin Hee Hahn & Dionisius A. Narjoko (ed.), Globalization and Performance of Small and Large Firms, chapter 7, pages VII-1 - V, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Simona Mateut, 2018. "Subsidies, financial constraints and firm innovative activities in emerging economies," Small Business Economics, Springer, vol. 50(1), pages 131-162, January.
    5. Bernd Ebersberger, 2011. "Public funding for innovation and the exit of firms," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 519-543, August.
    6. Francisco Puig & Miguel González-Loureiro & Pervez N. Ghauri, 2014. "Internationalisation for Survival: The Case of New Ventures," Management International Review, Springer, vol. 54(5), pages 653-673, October.
    7. Gregory D. Graff & Felipe de Figueiredo Silva & David Zilberman, 2020. "Venture Capital and the Transformation of Private R&D for Agriculture," NBER Chapters, in: Economics of Research and Innovation in Agriculture, pages 213-245, National Bureau of Economic Research, Inc.
    8. Qiao, Lu & Fei, Junjun, 2022. "Government subsidies, enterprise operating efficiency, and “stiff but deathless” zombie firms," Economic Modelling, Elsevier, vol. 107(C).
    9. Giovannetti, Giorgia & Ricchiuti, Giorgio & Velucchi, Margherita, 2017. "Size and technology: The Odd Couple for affiliates survival," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 64-71.
    10. Sourafel Girma & Holger Görg & Aoife Hanley & Eric Strobl, 2010. "The effect of grant receipt on start-up size: Evidence from plant level data," Journal of International Entrepreneurship, Springer, vol. 8(4), pages 371-391, December.
    11. Ratbek Dzhumashev & Vinod Mishra & Russell Smyth, 2011. "Exporting, R&D Investment and Firm Survival," Monash Economics Working Papers 39-11, Monash University, Department of Economics.
    12. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data," Research Policy, Elsevier, vol. 45(7), pages 1474-1492.
    13. Filippo Randelli & Giorgio Ricchiuti, 2015. "The Survival of Tuscan Firms," Working Papers - Economics wp2015_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    14. Sumiko Niwa, 2018. "Effects of a blocking patent on R&D with endogenous survival activities," Journal of Economics, Springer, vol. 125(3), pages 263-277, November.
    15. Paulo Maçãs Nunes & Zélia Serrasqueiro & Jacinto Vidigal da Silva, 2014. "Family-owned and non family-owned SMEs: empirical evidence of survival determinants," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 68-76.
    16. Spyros Arvanitis, 2013. "Micro-econometric approaches to the evaluation of technology-oriented public programmes: a non-technical review of the state of the art," Chapters, in: Albert N. Link & Nicholas S. Vonortas (ed.), Handbook on the Theory and Practice of Program Evaluation, chapter 3, pages 56-88, Edward Elgar Publishing.
    17. De Masi, G. & Giovannetti, G. & Ricchiuti, G., 2013. "Network analysis to detect common strategies in Italian foreign direct investment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(5), pages 1202-1214.
    18. Henrekson, Magnus & Johansson, Dan, 2010. "Firm Growth, Institutions and Structural Transformation," Ratio Working Papers 150, The Ratio Institute.
    19. Ali-Yrkkö, Jyrki, 2004. "Impact of Public R&D Financing on Private R&D - Does Financial Constraint Matter?," Discussion Papers 943, The Research Institute of the Finnish Economy.
    20. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.

    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:apeclt:v:20:y:2013:i:8:p:754-757. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/RAEL20 .

    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.