The Effect of Industry, Region and Time on New Business Survival - A Multi-Dimensional Analysis
We analyze the effect of industry, region and time on new-business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983-2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum efficient size and high numbers of entries. Regional growth has a rather pronounced positive influence on survival rates, while the relationship between the nationwide development of the particular industry and survival tends to be negative. We also find a remarkably high level of spatial autocorrelation.
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