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Small Business Mortality in Germany: A Comparison Between Regions and Sectors

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  • Josef Brüderl
  • Talat Mahmood

Abstract

Does geographic region or industry differences matter more in determining the likelihood of survival ? To answer this question, we compare the exit rates of new business firms for two German cities across a broad range of manufacturing and non-manufacturing sectors. Based on all business firms registrations and deregisterations for Berlin and Munich between 1981 until 1988, the variation in exit rates is hypothesized to be the result of differences in size, legal form and industry type (i.e., manufacturing or non-manufacturing). We find that geographic region and industry differences both play a significant role in influencing the death probability. Furthermore, the results show that size and legal form influence the exit rate in a similar manner, but industry effects are substantial across regions and within sectors. ZUSAMMENFASSUNG - (Sterberisiko von Kleingewerbeunternehmen in Deutschland: Ein Vergleich zwischen Regionen und Branchen) Üben regionale Faktoren oder Industriecharakteristika einen stärkeren Einfluß auf die Überlebenswarscheinlichkeit von Unternehmen aus? Um diese Frage zu beantworten, vergleichen wir Austrittsraten von neugegründeten Unternehmen des verarbeitenden und nichtverarbeitenden Gewerbes in zwei deutschen Städten. Die Untersuchung basiert auf den Firmenanmelde- und abmeldedaten für Berlin und München zwischen 1981 und 1988. Die Forschungshypothese lautet: Die Sterberaten werden durch die Unternehmensgröße, die Rechtsform und durch den Industrietyp (verarbeitendes bzw. nichtverarbeitendes Gewerbe) beeinflußt. Wir fanden heraus, daß die regionalen Faktoren und die Industriemerkmale einen signifikanten Einfluß auf die Sterbewahrscheinlichkeit haben. Außerdem zeigen die Ergebnisse, daß die Unternehmensgröße und die Rechtsform einen Einfluß auf die Austrittsraten haben, aber die Industrieeffekte sich erheblich nach den Regionen und den Wirtschaftssektoren unterscheiden.

Suggested Citation

  • Josef Brüderl & Talat Mahmood, 1996. "Small Business Mortality in Germany: A Comparison Between Regions and Sectors," CIG Working Papers FS IV 96-20, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    • Handle: RePEc:wzb:wzebiv:fsiv96-20
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    References listed on IDEAS

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    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
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    Cited by:

    1. Sven Müller, 2012. "Identifying spatial nonstationarity in German regional firm start-up data," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 113-132, September.
    2. René Söllner & Sandra Jung, 2017. "The impact of foreign trade and ownership on enterprise exits: new insights through micro data linking," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 11(1), pages 8-32, April.
    3. Jean Bonnet & Patricia Renou-Maissant, 2000. "La régulation macro-économique et sectorielle de la démographie d'entreprises," Économie et Prévision, Programme National Persée, vol. 145(4), pages 19-40.

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