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The survival of firms over the critical first 3 years and the local environment

Author

Listed:
  • Hannu Littunen
  • Esa Storhammar
  • Tuomo Nenonen

Abstract

The aim of this study was to examine the success of new firms in different environments and the factors affecting it. In this study the criterion of a successful firm is that of continued functioning, and firms are divided into two groups: those that have closed down and those that continue after the critical first 3 years. As the basis for a regional analysis the authors look first at the differences between these two groups in terms of the characteristics of firms and entrepreneurs. The regional distribution of the firms that closed down is then examined, followed by an analysis of the regional differences in the characteristics of all the firms and entrepreneurs studied. Regional differences were found in the closing down of firms as well as in the factors explaining the continuation/closing down of business activities. Explanations for the success of firms were found in the characteristic of the entrepreneur, the success of the start--up phase, and in the characteristics of the firm itself. The effects of the environment on firms can thus be seen through these variables.

Suggested Citation

  • Hannu Littunen & Esa Storhammar & Tuomo Nenonen, 1998. "The survival of firms over the critical first 3 years and the local environment," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(3), pages 189-202, January.
  • Handle: RePEc:taf:entreg:v:10:y:1998:i:3:p:189-202 DOI: 10.1080/08985629800000011
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    Citations

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    Cited by:

    1. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Calá, Carla Daniela, 2015. "Firm dynamics in developing countries: a single policy for all regions?," Nülan. Deposited Documents 2650, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Harold Fried & Loren Tauer, 2015. "An entrepreneur performance index," Journal of Productivity Analysis, Springer, vol. 44(1), pages 69-77, August.
    4. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2017. "Regional determinants of exit across firms' size: evidence from a developing country," Nülan. Deposited Documents 2548, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Carla Calá & Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2015. "The determinants of exit in a developing country: core and peripheral regions," The Annals of Regional Science, Springer;Western Regional Science Association, pages 927-944.
    6. Calá, Carla Daniela & Manjón Antolín, Miguel C. & Arauzo Carod, Josep Maria, 2014. "The Determinants of Exit in Argentina: Core and Peripheral Regions," Working Papers 2072/225299, Universitat Rovira i Virgili, Department of Economics.
    7. Calá, Carla Daniela, 2018. "Sectorial and regional determinants of firm dynamics in developing countries: evidence for low, medium and high tech manufacturing in Argentina," Nülan. Deposited Documents 2587, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    8. Calá, Carla Daniela, 2015. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2649, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. Khelil, Nabil, 2016. "The many faces of entrepreneurial failure: Insights from an empirical taxonomy," Journal of Business Venturing, Elsevier, vol. 31(1), pages 72-94.

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