Small Firms' Actions and their Survival Probabilities
The small firm is viewed as taking a complex of actions to facilitate market place survival. Selection of such actions involves choice about markets, costs, strategy, finance, organisation, human capital and innovation. Probit models of survival over two years are estimated for a random sample of 150 new businesses for which field work evidence on complex actions is available. Although many actions are found to play at least some role in promoting survival of the small firm, a parsimonious empirical model is presented which emphasises just ten actions. this model indicates the pivotal imortance of reward to the entrepreneurial input, allied to a tight control of the overall wage bill, if the small firm is successful to negotiate the early stage of its life cycle.
|Date of creation:||Oct 1997|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas VON UNGERN-STERNBERG, 1988.
"The Flexibility to Switch between Different Products,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
8806, Université de Lausanne, Faculté des HEC, DEEP.
- von Ungern-Sternberg, Thomas, 1990. "The Flexibility to Switch between Different Products," Economica, London School of Economics and Political Science, vol. 57(227), pages 355-69, August.
- Reid, Gavin C & Smith, Julia A, 2000.
" What Makes a New Business Start-Up Successful?,"
Small Business Economics,
Springer, vol. 14(3), pages 165-82, May.
- Evans, David S, 1987.
"Tests of Alternative Theories of Firm Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 95(4), pages 657-74, August.
- Oi, Walter Y, 1983. "Heterogeneous Firms and the Organization of Production," Economic Inquiry, Western Economic Association International, vol. 21(2), pages 147-71, April.
- Vickers,Douglas, 1987. "Money Capital in the Theory of the Firm," Cambridge Books, Cambridge University Press, number 9780521328418, October.
- repec:tpr:qjecon:v:103:y:1988:i:2:p:333-44 is not listed on IDEAS
- Gavin C Reid, 1996. "Capital Structure at Inception and the Short-Run Performance of Micro-Firms," CRIEFF Discussion Papers 9607, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
- Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
- Karlsson, Charlie & Olsson, Ola, 1998. " Product Innovation in Small and Large Enterprises," Small Business Economics, Springer, vol. 10(1), pages 31-46, February.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Reid, Gavin C., 1991. "Staying in business," International Journal of Industrial Organization, Elsevier, vol. 9(4), pages 545-556, December.
- Dobson, Stephen M & Gerrard, Bill J, 1989. "Growth and Profitability in the Leeds Engineering Sector," Scottish Journal of Political Economy, Scottish Economic Society, vol. 36(4), pages 334-52, November.
When requesting a correction, please mention this item's handle: RePEc:san:crieff:9721. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (the School of Economics)
If references are entirely missing, you can add them using this form.