El espíritu emprendedor, el tamaño de lanzamiento y la supervivencia de los pequeños empresarios

Firm demography has received considerable attention in recent years. There are numerous theoretical and empirical studies that shed light on the dynamics of firm survival and growth. These studies show that new firms start small, small firms are less likely to survive, and small firms grow faster conditional on their survival. These stylized facts on firm dynamics triggered the examination of determinants of survival. The studies in the literature treat start-up size as exogenous to survival. However, in this paper, we develop a counter argument and build up a simple two-period model to analyze the behavior of an entrepreneur. The main implication of our model is that the start-up size and the survival probability are determined simultaneously by the rational decision of the entrepreneur before entry, and, therefore, the start-up size will be an endogenous variable in the survival model. Then we test our model’s implication studying the survival process in the Turkish textile industry.