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Influences on the survival and failure of small firms in Malaysia

Author

Listed:
  • Graham Hall
  • Kalsom Abd. Wahab

Abstract

Logit regression is employed on 320 recipients of loans from the Malaysian Youth Economic Trust Fund to identify factors associated with whether they 'survived', defined as fully repaid their loans or 'failed', defined as being rendered involuntarily insolvent as a result of non-repayment. Explanatory variables are measures of human and social capital, motivation, location and types of strategy. Firm age and size are employed as controls. All variables have the expected sign except age and all have a high level of statistical significance, except level of education. Product differentiation appears the most important factor for survival.

Suggested Citation

  • Graham Hall & Kalsom Abd. Wahab, 2007. "Influences on the survival and failure of small firms in Malaysia," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 1(1), pages 88-106.
    • Handle: RePEc:ids:ijbglo:v:1:y:2007:i:1:p:88-106
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