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An Analysis of Small Business Size and Rate of Discontinuance

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Author Info

  • Alfred R Nucci
  • Timothy Bates

Abstract

This study investigates small business failure rates in relation to several measures of firm size. Utilizing the new Characteristics of Business Owners ( CBO ) data base, a nationwide sample of firms is utilized that is representative of the small business universe. One subset--small business employers--is shown to have relatively low rates of failure, while another group--very small firms with no employees--exhibits relatively high rates of business discontinuance. The finding that the probability of firm failure is strongly (inversely) related to firm size is shown to hold up as well when the age of the business is controlled for.

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File URL: ftp://ftp2.census.gov/ces/wp/1990/CES-WP-90-02.pdf
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 90-2.

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Date of creation: Jan 1990
Date of revision:
Handle: RePEc:cen:wpaper:90-2

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Related research

Keywords: CES; economic; research; micro; data; microdata; chief; economist;

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Citations

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Cited by:
  1. Bates, Timothy, 1998. "Survival patterns among newcomers to franchising," Journal of Business Venturing, Elsevier, vol. 13(2), pages 113-130, March.
  2. Robert H Mcguckin & Bradford J Jensen, 1996. "Firm Performance And Evolution Empirical Regularities In The U.S. Microdata," Working Papers 96-10, Center for Economic Studies, U.S. Census Bureau.
  3. Adela Luque & Javier Miranda, 2000. "Technology Use and Worker Outcomes: Direct Evidence from Linked Employee-Employer Data," Working Papers 00-13, Center for Economic Studies, U.S. Census Bureau.
  4. Frazer, Lorelle, 2001. "Causes of disruption to franchise operations," Journal of Business Research, Elsevier, vol. 54(3), pages 227-234, December.
  5. Timothy Bates & Caren Grown, 1991. "Commercial Bank Lending Practices And The Development Of Black-Owned Construction Companies," Working Papers 91-9, Center for Economic Studies, U.S. Census Bureau.
  6. Gary Castrogiovanni & Robert Justis, 2007. "Franchise failure: a reassessment of the Bates (1995) results," Service Business, Springer, vol. 1(3), pages 247-256, September.
  7. Catherine Armington & Zoltan Acs, 2000. "Differences in Job Growth and Persistence in Services and Manufacturing," Working Papers 00-04, Center for Economic Studies, U.S. Census Bureau.
  8. Sang V Nguyen & Mary L Streitwieser, 1998. "Factor Substitution In U.S. Manufacturing: Does Plant Size Matter," Working Papers 98-6, Center for Economic Studies, U.S. Census Bureau.
  9. Zoltan J. Acs & Catherine Armington, 2004. "Job Creation and Persistence in Services and Manufacturing," Papers on Entrepreneurship, Growth and Public Policy 2004-16, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  10. Thornhill, Stewart Amit, Raphael, 2003. "Comprendre l'echec : mortalite organisationnelle et approche fondee sur les ressources," Direction des etudes analytiques : documents de recherche 2003202f, Statistics Canada, Direction des etudes analytiques.
  11. Lafontaine, Francine & Shaw, Kathryn L., 1998. "Franchising growth and franchisor entry and exit in the U.S. market: Myth and reality," Journal of Business Venturing, Elsevier, vol. 13(2), pages 95-112, March.
  12. Brian Headd, 1999. "The Characteristics of Business Owners Database, 1992," Working Papers 99-8, Center for Economic Studies, U.S. Census Bureau.
  13. Dennis Glennon & Peter Nigro, 2005. "An Analysis of SBA Loan Defaults by Maturity Structure," Journal of Financial Services Research, Springer, vol. 28(1), pages 77-111, October.
  14. Kuo-Feng Huang & Chwo-Ming Yu, 2011. "The effect of competitive and non-competitive R&D collaboration on firm innovation," The Journal of Technology Transfer, Springer, vol. 36(4), pages 383-403, August.
  15. Alfred R Nucci, 1989. "The Characteristics of Business Owners (CBO) Database," Working Papers 89-9, Center for Economic Studies, U.S. Census Bureau.
  16. Thornhill, Stewart Amit, Raphael, 2003. "Learning from Failure: Organizational Mortality and the Resource-based View," Analytical Studies Branch Research Paper Series 2003202e, Statistics Canada, Analytical Studies Branch.
  17. Brian Headd, 2001. "Business Success: Factors Leading to Surviving and Closing Successfully," Working Papers 01-01, Center for Economic Studies, U.S. Census Bureau.
  18. Alfred R Nucci, 1992. "The Characteristics of Business Owners Database," Working Papers 92-7, Center for Economic Studies, U.S. Census Bureau.

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