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An Analysis of Small Business Size and Rate of Discontinuance

Author

Listed:
  • Alfred R Nucci
  • Timothy Bates

Abstract

This study investigates small business failure rates in relation to several measures of firm size. Utilizing the new Characteristics of Business Owners ( CBO ) data base, a nationwide sample of firms is utilized that is representative of the small business universe. One subset--small business employers--is shown to have relatively low rates of failure, while another group--very small firms with no employees--exhibits relatively high rates of business discontinuance. The finding that the probability of firm failure is strongly (inversely) related to firm size is shown to hold up as well when the age of the business is controlled for.

Suggested Citation

  • Alfred R Nucci & Timothy Bates, 1990. "An Analysis of Small Business Size and Rate of Discontinuance," Working Papers 90-2, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:90-2
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    File URL: https://www2.census.gov/ces/wp/1990/CES-WP-90-02.pdf
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