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Start-Up size and Post-Entry Performance: The Case of Tourism Services in Italy

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  • E. Santarelli

Abstract

In this paper a large and comprehensive longitudinal data base is used to identify the start-up of new firms in Italian tourism services and their subsequent post-entry performance. Ana lysed in particular is the link between the survival and growth of hotels, restaurants, and catering firms in each Italian region and their start-up size. While it was found that in twelve out of twenty regions the likelihood of survival is significantly influenced by the start-up size, Gibrat's Law proved to hold for most regions, in contrast to the results found by several authors with regard to other sectors and countries. This implies that whereas larger newborn firms in the tourism sector have in most Italian regions a higher probability of survival than their smaller counterparts, the probability of a proportionate change in size during the relevant period is the same for all firms belonging to this sector in the large majority of regions.

Suggested Citation

  • E. Santarelli, 1996. "Start-Up size and Post-Entry Performance: The Case of Tourism Services in Italy," Working Papers 257, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:257
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    1. Sutton, John, 1995. "The size distribution of businesses, part I: a benchmark case," LSE Research Online Documents on Economics 2289, London School of Economics and Political Science, LSE Library.
    2. John Sutton, 1995. "The Size Distribution of Businesses, Part I: A Benchmark Case," STICERD - Economics of Industry Papers 09, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    3. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468.
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    Cited by:

    1. Korres, George M., 2007. "The Role of Innovation Activities in Tourism and Regional Growth in Europe," MPRA Paper 25380, University Library of Munich, Germany, revised 23 Jun 2007.
    2. Yuji Honjo, 2000. "Business failure of new software firms," Applied Economics Letters, Taylor & Francis Journals, vol. 7(9), pages 575-579.
    3. E. Santarelli, 1997. "Patterns of new firm Survival and Growth in the Italian Financial Intermediation Industry," Working Papers 278, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Audretsch, David B. & Santarelli, Enrico & Vivarelli, Marco, 1999. "Start-up size and industrial dynamics: some evidence from Italian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 965-983, October.
    5. Martin Falk & Eva Hagsten, 2014. "Output growth and prices of establishments in the Swedish lodging industry," ERSA conference papers ersa14p360, European Regional Science Association.
    6. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January.
    7. repec:eee:touman:v:36:y:2013:i:c:p:377-390 is not listed on IDEAS
    8. Jui-Kou Shang & Wei-Ting Hung & Fei-Ching Wang, 2008. "Service outsourcing and hotel performance: three-stage DEA analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1053-1057.
    9. Marcelo Resende, 2007. "Determinants of firm start-up size in the Brazilian industry: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 39(8), pages 1053-1058.
    10. Louri, Helen & Peppas, Costas & Tsionas, Efthymios, 2006. "Foreign presence, technical efficiency and firm survival in Greece: a simultaneous equation model with latent variables approach," MPRA Paper 29274, University Library of Munich, Germany.
    11. Harada, Nobuyuki, 2003. "Who succeeds as an entrepreneur? An analysis of the post-entry performance of new firms in Japan," Japan and the World Economy, Elsevier, vol. 15(2), pages 211-222, April.
    12. Harald Strotmann, 2002. "Determinanten des Überlebens von Neugründungen in der badenwürttembergischen Industrie. Eine empirische Survivalanalyse mit amtlichen Betriebsdaten," IAW Discussion Papers 06, Institut für Angewandte Wirtschaftsforschung (IAW).

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