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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.

Suggested Citation

  • Miller, James P., 1990. "Survival and Growth of Independent Firms and Corporate Affiliates in Metro and Nonmetro America," Rural Development Research Reports 334331, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:ersrdr:334331
    DOI: 10.22004/ag.econ.334331
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    File URL: https://ageconsearch.umn.edu/record/334331/files/RDRR74.pdf
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    References listed on IDEAS

    as
    1. David L. Barkley, 1978. "Plant Ownership Characteristics and the Locational Stability of Rural Iowa Manufacturers," Land Economics, University of Wisconsin Press, vol. 54(1), pages 92-99.
    2. Miller, James P., 1987. "Recent Contributions Of Small Businesses And Corporations To Rural Job Creation," Staff Reports 277927, United States Department of Agriculture, Economic Research Service.
    3. William J. Coffey & Mario Polèse, 1984. "The Concept Of Local Development: A Stages Model Of Endogenous Regional Growth," Papers in Regional Science, Wiley Blackwell, vol. 55(1), pages 1-12, January.
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