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New Small Firms And Dimensions Of Economic Performance

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  • Sherrill Shaffer
  • Iftekhar Hasan
  • Mingming Zhou

Abstract

Using data from metropolitan U.S. labor market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities, and growth rates of several income and employment variables. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects of entry in metropolitan markets than previously documented, and point to several potential tradeoffs associated with entry by small firms.

Suggested Citation

  • Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2008. "New Small Firms And Dimensions Of Economic Performance," CAMA Working Papers 2008-24, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:camaaa:2008-24
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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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