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Firm start-up strategies and performance in France: Survival and growth

Author

Listed:
  • Jean Bonnet

    (University of Caen Basse-Normandie - CREM-CNRS)

  • Nicolas Le Pape

    (University of Caen Basse-Normandie - CREM-CNRS)

  • Teresa Nelson

    (Simmons College School of Management - Boston)

Abstract

Essential performance outcomes of the new firm, including survival and growth, are related to financial and operational factors of the firm. We present a model that shows that firm financing via debt has some influence on types of market outreach, survival, and also growth of new firms in France. Using a robust, longitudinal dataset of the population of firms throughout the country established, continuing, and closing over the period of 2002 to 2007 (available through the French government via the SINE Survey: Système d’informations sur les nouvelles entreprises), we show that for a given indebtedness of the new firm, the entrepreneurial behavior generally improves the survival and the growth of new ventures.

Suggested Citation

  • Jean Bonnet & Nicolas Le Pape & Teresa Nelson, 2011. "Firm start-up strategies and performance in France: Survival and growth," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201117, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  • Handle: RePEc:tut:cremwp:201117
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    High growth new firms; Aggressiveness; Indebtedness; Model; Performance.;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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