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Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit

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Author Info

  • Baldwin, John R.
  • Bian, Lin
  • Dupuy, Richard
  • Gellatly, Guy

Abstract

This study investigates the determinants of failure for new Canadian firms. It explores the role that certain factors play in conditioning the likelihood of survival - factors related to industry structure, firm demographics and macroeconomic cycles. It asks whether the determinants of failure are different for new start-ups than for firms that have reached adolescence, and if the magnitude of these differences is economically significant. It examines whether, after controlling for certain influences, failure rates differ across industries and provinces. Two themes figure prominently in this analysis. The first is the impact that certain industry characteristics - such as average firm size and concentration - have on the entry/exit process, either through their influence on failure costs or on the intensity of competition. The second centres on how the dimensions of failure evolve over time as new firms gain market experience.

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Bibliographic Info

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This book is provided by Statistics Canada, Economic Analysis in its series Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit with number stcb5e and published in 2000.

ISBN: 0-660-17933-4
Handle: RePEc:stc:stcb5e:stcb5e

Contact details of provider:
Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
Web page: http://www.statcan.gc.ca
More information through EDIRC

Related research

Keywords: Business performance and ownership; Small and medium-sized businesses;

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