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Entrepreneurship Dynamics in Australia: Lessons from Micro‐data

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  • Sasan Bakhtiari

Abstract

Using a large firm‐level dataset covering the years 2002–2015, I explore the dynamics of entrepreneurship in Australia and their evolution over time. Put briefly, the Australian entrepreneurial landscape has become less dynamic and more hazardous over the observed period. With time passing, relatively fewer entrepreneurs are entering the market, and those that enter are more likely to exit than their counterparts that entered in earlier years. In particular, there is a seemingly permanent increase in exit probability followed by a spike after the global financial crisis. Despite fewer firms entering, the share of young firms from job creation has been steadily high. I finish by offering a few thoughts to help understand these changes.

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  • Sasan Bakhtiari, 2019. "Entrepreneurship Dynamics in Australia: Lessons from Micro‐data," The Economic Record, The Economic Society of Australia, vol. 95(308), pages 114-140, March.
    • Handle: RePEc:bla:ecorec:v:95:y:2019:i:308:p:114-140
    DOI: 10.1111/1475-4932.12460
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    Cited by:

    1. Adam Triggs, 2021. "Stock Markets and Competition: What Does A Concentrated Stock Market Tell Us About Competition In The Economy?," Economic Papers, The Economic Society of Australia, vol. 40(3), pages 194-208, September.
    2. Stephen P. King, 2023. "Productivity, Economic Dynamism and the “Failure of Competition” Narrative," Economic Papers, The Economic Society of Australia, vol. 42(3), pages 213-228, September.
    3. Sasan Bakhtiari & Robert Breunig & Lisa Magnani & Jacquelyn Zhang, 2020. "Financial Constraints and Small and Medium Enterprises: A Review," The Economic Record, The Economic Society of Australia, vol. 96(315), pages 506-523, December.
    4. Andinet Woldemichael & Margaret Joldowski, 2019. "Working Paper 328 - The Cost of Inaction: Obstacles and Lost Jobs in Africa," Working Paper Series 2454, African Development Bank.
    5. Sasan Bakhtiari, 2020. "Do manufacturing entrepreneurs in Australia have (or develop) a productivity advantage?," Journal of Productivity Analysis, Springer, vol. 53(3), pages 321-338, June.
    6. Sasan Bakhtiari, 2021. "Trends in Market Concentration of Australian Industries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(1), pages 57-75, March.
    7. Bakhtiari, Sasan, 2021. "Government financial assistance as catalyst for private financing," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 59-78.
    8. Yilin Zhou & Hongbo Li & Fakhar Shahzad, 2021. "Does College Education Promote Entrepreneurship Education in China?," SAGE Open, , vol. 11(3), pages 21582440211, July.
    9. Antonio Andrés Bellofatto & Begoña Domínguez & Elyse C. Dwyer, 2023. "Uncovering Urban Advantages: Evidence from Australian Firm‐Level Data," The Economic Record, The Economic Society of Australia, vol. 99(S1), pages 13-34, December.

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