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Survival chances of new businesses: do regional conditions matter?

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  • Oliver Falck

Abstract

This article analyses the effects of industry-, regional- and firm-level characteristics on the post-entry performance of new businesses by means of an econometric survival time model. First preference is given to an accelerated failure time model assuming a log-logistic distribution. The data involve a representative sample of businesses in the private sector of West Germany during 1993 to 2002 period. The results demonstrate that the regional dimension is most important; whereas firm-level characteristics play a subordinated role.

Suggested Citation

  • Oliver Falck, 2007. "Survival chances of new businesses: do regional conditions matter?," Applied Economics, Taylor & Francis Journals, vol. 39(16), pages 2039-2048.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2039-2048
    DOI: 10.1080/00036840600749615
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    References listed on IDEAS

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    1. Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    2. Klaesson , Johan & Karlsson, Charlie, 2014. "Market potential, start-up size and the survival of new firms," Working Paper Series in Economics and Institutions of Innovation 384, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    4. Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    5. Dirk Oberschachtsiek, 2014. "Waiting to start a business venture. Empirical evidence on the determinants," Working Paper Series in Economics 293, University of Lüneburg, Institute of Economics.
    6. repec:taf:entreg:v:28:y:2016:i:9-10:p:746-767 is not listed on IDEAS
    7. Marco Caliendo & Steffen Künn, 2014. "Regional Effect Heterogeneity of Start-up Subsidies for the Unemployed," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1108-1134, June.
    8. repec:bla:growch:v:48:y:2017:i:3:p:297-312 is not listed on IDEAS
    9. Li Yu & Peter F. Orazem & Robert W. Jolly, 2010. "Why Do Rural Firms Live Longer?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 669-688.
    10. Oberschachtsiek, Dirk, 2010. "How do local labor market conditions and individual characteristics affect quitting selfemployment?," Discussion Papers, Presidential Department P 2010-001, Social Science Research Center Berlin (WZB).
    11. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "Natural Disasters, Industrial Clusters and Manufacturing Plant Survival," Discussion papers 15008, Research Institute of Economy, Trade and Industry (RIETI).
    12. repec:eee:joreco:v:28:y:2016:i:c:p:219-227 is not listed on IDEAS
    13. Filippo Randelli & Giorgio Ricchiuti, 2015. "The Survival of Tuscan Firms," Working Papers - Economics wp2015_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    14. Agostino, Mariarosaria & Nifo, Annamaria & Trivieri, Francesco & Vecchione, Gaetano, 2016. "Total factor productivity heterogeneity: channelling the impact of institutions," MPRA Paper 72759, University Library of Munich, Germany.
    15. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," IDEI Working Papers 741, Institut d'Économie Industrielle (IDEI), Toulouse.
    16. Staniewski, Marcin W., 2016. "The contribution of business experience and knowledge to successful entrepreneurship," Journal of Business Research, Elsevier, vol. 69(11), pages 5147-5152.
    17. Michael Fritsch & Florian Noseleit & Yvonne Schindele, 2014. "Surviving Against the Tide: Are New Businesses in Innovative Industries Less Affected by General Economic Trends?," Jena Economic Research Papers 2014-017, Friedrich-Schiller-University Jena.
    18. Yun Jeong Choi & Jee Young Kim & Min Hee You, 2017. "Radius Restriction and Firms' Survival: Evidence from the Coffee Franchise Industry," Working papers 2017rwp-115, Yonsei University, Yonsei Economics Research Institute.
    19. Oberschachtsiek, Dirk & Scioch, Patrycja, 2011. "The outcome of coaching and training for self-employment : a statistical evaluation of non-financial support schemes for unemployed business founders in Germany," IAB Discussion Paper 201116, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    20. Martin G.A. Svensson, 2015. "When being wrong might be right: on overconfidence as an evolutionary mechanism of nascent entrepreneurs," Chapters,in: Innovation and Entrepreneurship in the Global Economy, chapter 10, pages 237-258 Edward Elgar Publishing.
    21. Matthew A. Cole & Robert J R Elliott & Toshihiro Okubo & Eric Strobl, 2014. "Natural Disasters and the Birth, Life and Death of Plants: The Case of the Kobe Earthquake," Working Papers 2014-114, Department of Research, Ipag Business School.
    22. Sam Tavassoli & Viroj Jienwatcharamongkhol, 2016. "Survival of entrepreneurial firms: the role of agglomeration externalities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(9-10), pages 746-767, October.
    23. Anabela Santos & Paulo Neto & Maria Manuel Serrano, 2016. "A long-term mortality analysis of subsidized firms in rural areas: an empirical study in the Portuguese Alentejo region," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 125-151, April.

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