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The survival of business takeovers and new venture start-ups

Author

Listed:
  • Guoqian Xi
  • Jörn Block
  • Frank Lasch
  • Frank Robert
  • Roy Thurik

Abstract

Business takeovers and new venture start-ups are two important and distinct entry modes of entrepreneurship. They differ from resource-based and organizational ecology perspectives. We compare firm survival patterns and determinants associated with the two entry modes. From two large French datasets, we find that business takeovers have a higher survival rate than new venture start-ups. However, these differences in survival probability reduce over the entrepreneurship life cycle and when controlling for different entrepreneur and firm characteristics. Moreover, we identify differences in determinants of survival for the two groups, highlighting a distinction between the two entrepreneurship entry modes. This work contributes to the literature on the relationship between entrepreneurship entry and firm survival, thereby contributing to both entrepreneurship and firm survival research.

Suggested Citation

  • Guoqian Xi & Jörn Block & Frank Lasch & Frank Robert & Roy Thurik, 2020. "The survival of business takeovers and new venture start-ups," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(3), pages 797-826.
    • Handle: RePEc:oup:indcch:v:29:y:2020:i:3:p:797-826.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz076
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    Cited by:

    1. Abbasianchavari, Arezou & Block, Joern, 2022. "Perceptual factors explaining the gender gap in entrepreneurial propensity: A replication and extension," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    2. Anne Domurath & Simon Taggar & Holger Patzelt, 2023. "A contingency model of employees’ turnover intent in young ventures," Small Business Economics, Springer, vol. 60(3), pages 901-927, March.

    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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