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An analysis of new firm survival using a hazard function

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  • P. Holmes
  • A. Hunt
  • I. Stone
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    Abstract

    A unique data set is used to provide a detailed examination of the survival of newly established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macro-economic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579234
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    Bibliographic Info

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

    Volume (Year): 42 (2010)
    Issue (Month): 2 ()
    Pages: 185-195

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    Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:185-195

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    Cited by:
    1. Joana Afonso & Isabel Mota & Sandra Tavares Silva, 2011. "Micro credit and Territory - Portugal as a case study," FEP Working Papers 400, Universidade do Porto, Faculdade de Economia do Porto.
    2. Peter Nunnenkamp & Hannes Öhler & Tillmann Schwörer, 2011. "US based NGOs in International Development Cooperation: Survival of the Fittest?," DEGIT Conference Papers c016_046, DEGIT, Dynamics, Economic Growth, and International Trade.
    3. Nunnenkamp, Peter & Öhler, Hannes & Schwörer, Tillmann, 2013. "US based NGOs in International Development: Financial and Economic Determinants of Survival," World Development, Elsevier, vol. 46(C), pages 45-65.
    4. Tristan Boyer & Regis Blazy, 2013. "Born to be alive? The survival of innovative and non-innovative French micro start-ups," Working Papers 2013-012, Department of Research, Ipag Business School.
    5. Juan Felipe Parra, 2011. "Determinantes de la probabilidad de cierre de nuevas empresas en Bogotá," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA.
    6. Tien Manh Vu & Hiroyuki Yamada & Tsunehiro Otsuki, 2014. "The rise and fall of multinational enterprises in Vietnam: survival analysis using census data during 2000-2011," OSIPP Discussion Paper 14E001, Osaka School of International Public Policy, Osaka University.

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