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Success of start-up firms: the role of financial constraints

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  • Tobias Stucki

Abstract

Although there are some studies that empirically test the impact of financial constraints on the success of start-ups, the persistence of this impact is not well understood. Using survey data for a cohort of Swiss start-ups that were observed during a period of 10 years, we find that financial constraints are not only a problem of the first years. Although the negative impact of financial constraints on firm survival disappears with increasing age of the firms, profit is persistently negatively affected by financial constraints. Copyright 2014 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Tobias Stucki, 2014. "Success of start-up firms: the role of financial constraints," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 25-64, February.
    • Handle: RePEc:oup:indcch:v:23:y:2014:i:1:p:25-64
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    File URL: http://hdl.handle.net/10.1093/icc/dtt008
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