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The survival half-life of firms and its effect on economic development


  • James Derbyshire



Shane (2009) has suggested that encouraging more people to become entrepreneurs is bad public policy because it is existing firms that bring jobs and productivity growth and not new firms. To test this view this article shifts the perspective onto existing firms and away from start-up by examining firm survivability in the regions and countries of the UK and its relationship with employment and productivity growth. The article provides some evidence to support Shane’s (2009) view that it is existing firms that are important for economic development.

Suggested Citation

  • James Derbyshire, 2013. "The survival half-life of firms and its effect on economic development," Local Economy, London South Bank University, vol. 28(1), pages 114-122, February.
  • Handle: RePEc:sae:loceco:v:28:y:2013:i:1:p:114-122

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