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Survival and Growth of Independent Firms and Corporate Affiliates in Metro and Nonmetro America

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  • Miller, James P.

Abstract

Analysis of new firm survival and growth during 1980-86 reveals that local, independent firms survived better and grew faster than corporate affiliates in nonmetro areas. Independent firms quickly reached their optimum size after beginning operation. The rate of employment expansion for nonmetro independent firms was about half that of metro independent firms. Corporate affiliates in traditional nonmetro industries dependent on natural resources and low-wage labor continued to locate mostly in nonmetro areas. In developing future strategies for industrial development, the strengths and weaknesses of corporate ownership and control should be balanced against those of local ownership.

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Handle: RePEc:ags:ersrdr:334331
DOI: 10.22004/ag.econ.334331
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