Survival Chances of Start-Ups - do Regional Conditions Matter?
AbstractThis paper analyses the effect of industry, regional and firm level characteristics on the post entry performance of newly founded 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 dataset involves a representative sample of establishments in the private sector provided by the Institute for Employment Research (IAB). The data relates to West German states during 1993-2002 period. A start-up’s The likelihood of failure tends to be relatively high in industries characterized by a high minimum efficient size and high numbers of entries. The regional dimension has a considerable impact upon improvements of estimation results. On the firm level, the size of the firm seems to be the best predictor for the likelihood of failure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p49.
Date of creation: Aug 2005
Date of revision:
Contact details of provider:
Postal: Augasse 2-6, 1090 Vienna, Austria
Web page: http://www.ersa.org
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-BEC-2006-02-05 (Business Economics)
- NEP-ENT-2006-02-05 (Entrepreneurship)
- NEP-GEO-2006-02-05 (Economic Geography)
- NEP-TID-2006-02-05 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer, vol. 16(1), pages 1-11, February.
- Braconier, Henrik & Ekholm, Karolina, 1999.
"Swedish Multinationals and Competition from High- and Low-Wage Locations,"
Working Paper Series
523, Research Institute of Industrial Economics.
- Braconier, Henrik & Ekholm, Karolina, 2000. "Swedish Multinationals and Competition from High- and Low-Wage Locations," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 448-61, August.
- Braconier, Henrik & Ekholm, Karolina, 1999. "Swedish Multinationals and Competition from High- and Low-Wage Locations," CEPR Discussion Papers 2323, C.E.P.R. Discussion Papers.
- Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, vol. 27(2), pages 245-260, October.
- Fritsch, Michael & Brixy, Udo & Falck, Oliver, 2004.
"The effect of industry, region and time on new business survival: A multi-dimensional analysis,"
Freiberg Working Papers
2004,04, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Michael Fritsch & Udo Brixy & Oliver Falck, 2006. "The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis," Review of Industrial Organization, Springer, vol. 28(3), pages 285-306, 05.
- Fritsch, Michael & Brixy, Udo & Falck, Oliver, 2004. "The effect of industry, region and time on new business survival: A multi-dimensional analysis," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-26-04, University of Passau, Faculty of Business and Economics.
- Michael Fritsch & Oliver Falck & Udo Brixy, 2004. "The Effect of Industry, Region and Time on New Business Survival - A Multi-Dimensional Analysis," Papers on Entrepreneurship, Growth and Public Policy 2004-31, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Tveteras, Ragnar & Eide, Geir Egil, 2000. " Survival of New Plants in Different Industry Environments in Norwegian Manufacturing: A Semi-proportional Cox Model Approach," Small Business Economics, Springer, vol. 14(1), pages 65-82, February.
- Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995.
"The survival of new plants: Start-up conditions and post-entry evolution,"
International Journal of Industrial Organization,
Elsevier, vol. 13(4), pages 459-481, December.
- Guimaraes, Paulo & Mata, José & Portugal, Pedro, 1995. "The Survival of New Plants: Start-up Conditions and Post-entry Evolution," CEPR Discussion Papers 1203, C.E.P.R. Discussion Papers.
- José Mata & Pedro Portugal, 2001. "The Survival of New Domestic and Foreign Owned Firms," Working Papers w200101, Banco de Portugal, Economics and Research Department.
- Dunne, T. & Roberts, M.J., 1989. "Variation In Producer Turnover Across U.S. Manufacturing Industries," Papers 12-89-2, Pennsylvania State - Department of Economics.
- P.A. Geroski & José Mata & Pedro Portugal, 2007. "Founding Conditions and the Survival of New Firms," DRUID Working Papers 07-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Wagner, Joachim, 1994. "The Post-entry Performance of New Small Firms in German Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 42(2), pages 141-54, June.
- Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
- Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Dimara, Efthalia & Tzelepis, Dimitris & Skuras, Dimitris, 2000. "Regional Development Incentives And Firm Survival: A Case Study Of The Greek Food Sector," ERSA conference papers ersa00p209, European Regional Science Association.
- Li Yu & Peter F. Orazem & Robert W. Jolly, 2010.
"Why Do Rural Firms Live Longer?,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 93(3), pages 669-688.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.