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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. Timothy Bates, 1997. "Survival Patterns Among Newcomers To Franchising," Working Papers 97-5, Center for Economic Studies, U.S. Census Bureau.
  2. 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.
  3. 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.
  4. 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.
  5. Brian Headd, 2001. "Business Success: Factors Leading to Surviving and Closing Successfully," Working Papers 01-01, Center for Economic Studies, U.S. Census Bureau.
  6. Catherine Armington & Zoltan Acs, 2004. "Job creation and persistence in services and manufacturing," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 309-325, 07.
  7. Jensen, J Bradford & McGuckin, Robert H, 1997. "Firm Performance and Evolution: Empirical Regularities in the US Microdata," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 25-47.
  8. Gary Castrogiovanni & Robert Justis, 2007. "Franchise failure: a reassessment of the Bates (1995) results," Service Business, Springer, vol. 1(3), pages 247-256, September.
  9. 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.
  10. Frazer, Lorelle, 2001. "Causes of disruption to franchise operations," Journal of Business Research, Elsevier, vol. 54(3), pages 227-234, December.
  11. 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.
  12. Alfred R Nucci, 1989. "The Characteristics of Business Owners (CBO) Database," Working Papers 89-9, Center for Economic Studies, U.S. Census Bureau.
  13. 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.
  14. 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.
  15. Brian Headd, 1999. "The Characteristics of Business Owners Database, 1992," Working Papers 99-8, Center for Economic Studies, U.S. Census Bureau.
  16. Alfred R Nucci, 1992. "The Characteristics of Business Owners Database," Working Papers 92-7, Center for Economic Studies, U.S. Census Bureau.
  17. 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.
  18. 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.

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