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The Formation of New Firms – An Empirical Analysis from Switzerland

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  • Harabi, Najib

Abstract

Because of its importance to a dynamic development of the economy, the formation of new firms has been viewed with greater interest from policy makers at the national, regional and local levels and from representatives of private business associations, formal and informal networks. According to statements of the Swiss Federal Office for Vocational Education and Technology (BBT, Bern), there are more than 200 initiatives that aim at encouraging the formation of new firms in Switzerland. However, an accompanying scientific study of these initiatives is lacking. Serious knowledge gaps exist. The present research project attempts to make a contribution, in a systematic way, to fill in some of these gaps. It is based on a study of 20 case studies and of a large survey conducted in 1999 emong 745 newly founded firms in Switzerland. Initial results are presented concerning the fol-lowing areas: (1) Portrait of firm founders. (2) Success indicators of firm for-mation. (3) Factors affecting success of firm formation. (4) Relationships be-tween success and success factors. (5) Future prospects. Finally policy recommendations are drawn from our findings.

Suggested Citation

  • Harabi, Najib, 2001. "The Formation of New Firms – An Empirical Analysis from Switzerland," MPRA Paper 4418, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:4418
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    File URL: https://mpra.ub.uni-muenchen.de/4418/1/MPRA_paper_4418.pdf
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    References listed on IDEAS

    as
    1. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-674, August.
    2. Christophe Boone & Arjen Witteloostuijn, 1996. "Ceo Locus of Control and Small Firm Performance: an Integrative Framework and Empirical Test," Journal of Management Studies, Wiley Blackwell, vol. 33(5), pages 667-700, September.
    3. Harhoff, Dietmar & Stahl, Konrad & Woywode, Michael, 1998. "Legal Form, Growth and Exit of West German Firms--Empirical Results for Manufacturing, Construction, Trade and Service Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 453-488, December.
    4. Hall, Bronwyn H, 1987. "The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 583-606, June.
    5. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Formation of new firms; new enterprises; small firms; small-to-medium-sized en-terprises; self-employed; start-ups; firm foundations; promoting start-ups; firm promotion; private sector promotion; Switzerland;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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