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The relationships between, on the hand, size, growth and age of the firm and, on the other hand, small business survival – a constructive critique and a proposal of a new framework

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  • Guimarães Barbosa, Evaldo

Abstract

This article claims that the basic relationships between, on the one side, size, growth and age of the small firm and, on the other side, the small firm’s hazard of exit is, apart from the “honeymoon” and the “liability of senescence” effects, non-linear, either U-shaped or inverted U-shaped. Variations from these patterns are dependent upon choices of different specifications and the presence or absence from the multivariate analysis of the real determinants for which size, growth and age of the firm proxy. The article also claims that the quadratic specification that has traditionally been fitted is rarely the most adequate, since other combinations of different pairs of exponents would certainly better capture nuances of the relationships being regressed. The article conclusively claims that these realizations explain findings in the extant literature that are awkward, unexpected, embarrassing and unacceptable and interpretations that are many times even more inapplicable.

Suggested Citation

  • Guimarães Barbosa, Evaldo, 2016. "The relationships between, on the hand, size, growth and age of the firm and, on the other hand, small business survival – a constructive critique and a proposal of a new framework," MPRA Paper 72111, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:72111
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    File URL: https://mpra.ub.uni-muenchen.de/72111/1/MPRA_paper_72111.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Guimarães Barbosa, Evaldo, 2016. "External determinants of small business survival – The overwhelming impact of GDP and other environmental factors and a new proposed framework," MPRA Paper 73346, University Library of Munich, Germany.
    2. Guimarães Barbosa, Evaldo, 2017. "Determinants of small business survival: The impacts of capital intensity and the collateral value of fixed assets," MPRA Paper 76434, University Library of Munich, Germany.
    3. Aliev, Timur & Flegontova, Tatiana & Kuznetsova, A & Pyzhikov, Nikita & Ponomareva, Olga, 2018. "Activation of the Integration Agenda of the Eaec in the Context of Changing the Regional Architecture in the Apr," Working Papers 031834, Russian Presidential Academy of National Economy and Public Administration.

    More about this item

    Keywords

    Small firms; Survival determinants; Size; growth and age; Cox regression;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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