Why New Firms Never Get Large? Evidence on Post-Entry Growth of Italian New Firms
In the microeconomic literature substantial attention is cur rently paid to the problem of new firms' post-entry growth. This paper contributes to the literature by examining a large number of factors influencing the probability to grow of a sample of Italian firms born in the period 1999-2000. We confirm some of the ef fects discussed in the literature, particularly on initial size, financial resources and industry effects. Moreover, we show that the need for independence and founders' knowledge of the production process stemming from previous work experience significantly af fect firm growth. Market opportunities and innovative ideas do not significantly influence growth.
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Volume (Year): 95 (2005)
Issue (Month): 1 (January-February)
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