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The Survival and Growth of New Establishments in Sweden, 1987-1995

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  • Helena Persson

Abstract

The aim of the study is to examine the survival of new establishments and to identify factors affecting their survival probability and their employment growth.This study uses a unique data set on all new establishments that were created in Sweden 1987 and 1988, with the exception of the construction industry. The results show among others that:(i) new establishments face a high risk of closing down, (ii) the probability of establishment survival increases with the age and size of the establishment,(iii) variables that are assumed to measure access to resources (being a part of a multi-unit firm,and being new due to merger or dispersal) have a positive effect on survival, (iv) the number of employees at the start- up year has a negative effect on the employment growth, and (v) demographic and educational factors are important in explaining survival and growth. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Helena Persson, 2004. "The Survival and Growth of New Establishments in Sweden, 1987-1995," Small Business Economics, Springer, vol. 23(5), pages 423-440, October.
    • Handle: RePEc:kap:sbusec:v:23:y:2004:i:5:p:423-440
    DOI: 10.1007/s11187-004-3992-7
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