Business Demography Dynamics in Portugal: A Non-Parametric Survival Analysis

Abstract

Abstract:We address the post-entry performance of new Portuguese firms by investigating the structural characteristics of the hazard and survival functions, using non-parametric survival analysis. In order to approach prevalence of some stylized facts and determinants of new firm survival, we produced a new entrepreneurship database, using the administrative data of Quadros de Pessoal, following the Eurostat/OECD´s internationally comparable business demography methodology. This allowed the computation of a comprehensive array of entrepreneurship indicators on employer enterprise and survival dynamics in Portugal, over a period of 18 years, disaggregated in dimensions such as sectors, regions and size classes.

Interaction effects between the agglomerative externalities affecting the survival of small startups

“…Subsequently, these studies were reviewed for North American and European nations, such as Canada, the UK, Germany, Portugal, Spain, and Italy (Audretsch, Houweling, & Thurik, ; Pérez, Sanchis‐Llopis, & Sanchis‐Llopis, ), and recently expanded to countries in Asia and other continents, including Korea, China, Japan, India, Australia, and Ghana. The object of study has also been gradually diversified to other industrial fields, from the manufacturing considered in the beginning stage (Das & Srinivasan, ; Lopez‐Garcia & Puente, ; Nunes & Sarmento, ). The representative results of these studies on the determinants of firm survival and duration are summarized as follows.…”

“…First, meaningful initial factors contain not only the firm's own attributes, such as size, age, industrial field, ownership structure, financial condition, and technological innovation ability but also the founder's features, such as educational level, gender, and previous operational experience (Buenstorf & Guenther, ; Cefis & Marsili, ; Chung & Song, ; Gieure & Buendía‐Martínez, ; Jeon, Park, & Park, ; Kang & Lee, ; Kim & Lee, ; Lee, ; Song & Noh, ; Song & Sim, ; Tveterås & Eide, ). Second, other significant factors are related to external conditions, such as characteristics of the industry field that a firm belongs to, the spatial environment a firm is located in, and economic conditions (Christie & Sjoquist, ; Farinha, ; Geroski et al, ; Kim, Jang, & Do, ; Lee & Moon, ; Low & Brown, ; Nunes & Sarmento, ), which have been stressed by the importance of firm location, despite their relatively small influences in the empirical studies after the 2000s.…”

The dynamics of employer enterprise creation in Portugal over the last two decades: a firm size, regional and sectoral perspective

“…7. Firms that start up bigger also have a higher probability of survival (Carreira and Teixeira, 2011;Nunes and Sarmento, 2012;Geroski et al, 2010). The role of size is even more substantial in the service sector as firm's current size dimension highly determines its survivability (Nunes and Sarmento, 2010).…”

The New Approach to Estimation of the Hazard Function in Business Demography on Example of Data from New Zealand

“…Among reasons behind that theory those which are the most frequently pointed are superior management in large enterprises and the fact that large firms most often have bigger budget that can be used to survive tough periods of economic crisis. Nunes and Sarmento [17] suggest that there is a relation between bigger start up and expected high profits. The reduction of employment could also be used as a tool to survive for large enterprises.…”