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Survival chances of new businesses: do regional conditions matter?

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  • Oliver Falck

Abstract

This article analyses the effects of industry-, regional- and firm-level characteristics on the post-entry performance of new businesses by means of an econometric survival time model. First preference is given to an accelerated failure time model assuming a log-logistic distribution. The data involve a representative sample of businesses in the private sector of West Germany during 1993 to 2002 period. The results demonstrate that the regional dimension is most important; whereas firm-level characteristics play a subordinated role.

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Bibliographic Info

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

Volume (Year): 39 (2007)
Issue (Month): 16 ()
Pages: 2039-2048

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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2039-2048

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Cited by:
  1. Oberschachtsiek, Dirk & Scioch, Patrycja, 2011. "The outcome of coaching and training for self-employment : a statistical evaluation of non-financial support schemes for unemployed business founders in Germany," IAB Discussion Paper 201116, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," IDEI Working Papers 741, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Michael Fritsch & Florian Noseleit & Yvonne Schindele, 2014. "Surviving Against the Tide: Are New Businesses in Innovative Industries Less Affected by General Economic Trends?," Jena Economic Research Papers 2014-017, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Caliendo, Marco & Künn, Steffen, 2013. "Regional Effect Heterogeneity of Start-Up Subsidies for the Unemployed," IZA Discussion Papers 7460, Institute for the Study of Labor (IZA).
  5. Oberschachtsiek, Dirk, 2010. "How do local labor market conditions and individual characteristics affect quitting selfemployment?," Discussion Papers, Presidential Department P 2010-001, Social Science Research Center Berlin (WZB).
  6. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
  7. Dirk Oberschachtsiek, 2014. "Waiting to start a business venture. Empirical evidence on the determinants," Working Paper Series in Economics 293, University of Lüneburg, Institute of Economics.
  8. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Eric Strobl, 2014. "Natural Disasters and the Birth, Life and Death of Plants: The Case of the Kobe Earthquake," Working Papers 2014-114, Department of Research, Ipag Business School.

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