The survival of new plants: Start-up conditions and post-entry evolution

Mata, José; Portugal, Pedro; Guimarães, Paulo

doi:10.1016/0167-7187(95)00500-5

Cited by 426 publications

(328 citation statements)

References 22 publications

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“…9 New firm formation has a relatively low positive impact on employment growth for the start-up year and the three years after that, possibly reflecting the small average size of start-ups, as well as high mortality rates. Studies of the evolution of new businesses, such as Boeri and Cramer (1992) for Germany, and Mata, Portugal and Guimarães (1995) for Portugal, find that employment in entry cohorts tends to stagnate or even decline from the second or the third year onwards, thus corroborating the decline in the positive effect of new business formation on employment registered in the present study.…”

Section: Resultssupporting

confidence: 76%

“…Studies of new firm survival, such as the one by Mata, Portugal and Guimarães (1995), have found that initial size is a good indicator of the probability of survival, while several authors have argued that foreign direct investment is an important conduit for supply-side spillovers (see Blomström and Kokko, 1998 for a survey). In a related study, Baptista and Preto (2006) divide entry rates in the Portuguese economy into entry by large and small firms; foreign-owned and domestic-owned firms; and knowledge-based and other firms, finding that effects of new firm formation on subsequent employment change are different according to the type of entrant.…”

Section: Discussionmentioning

confidence: 99%

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Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Baptista

Escária

Madruga³

2005

SSRN Journal

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This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span . We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about eight years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.Acknowledgements: the authors would like to thank

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Section: Resultssupporting

confidence: 76%

Section: Discussionmentioning

confidence: 99%

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Baptista

Escária

Madruga³

2005

SSRN Journal

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“…Therefore, firms that begin their activity in sectors that are undergoing a period of growth have a greater chance of growing, and therefore of surviving. Some researchers (Mata et al, 1995) argue that, in some sectors, new firms have a greater capacity to find a place in the market and remain there. In short, the rate of survival appears to be linked with the level of technology of each sector, so that firms involved in activities that are more innovation intensive are in a better position to maintain their market position over time (Cefis and Marsili, 2005).…”

Section: Technology-based Firms and Survivalmentioning

confidence: 99%

Firm survival: The role of incubators and business characteristics

Más‐Verdú

Soriano

Roig‐Tierno

2015

Journal of Business Research

211

105

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The main objective of this research is to analyze the impact of business incubatorson the survival of their associated firms. Using a configurational comparative method, the fuzzy-set qualitative comparative analysis (fs/QCA), it also examines whether the degree of business innovation, size, sector of activity and export activity affect firm survival. One of the most notable conclusions from this analysis is that the survival of a firm is related with at least some of the following characteristics: the firm must be technology-based, its productive focus is on goods (rather than on services), or that it is located within the specific environment of A business incubator.

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“…In their model, a firm knows its own characteristics and those of its competitors, along with the future distribution of industry structure, conditional on the current structure. From an empirical perspective, a recent stream of literature has focused on the post-entry performance of firms and has investigated survival, growth and early exit of newborn firms (see, for instance, Reid, 1991;Boeri and Cramer, 1992;Baldwin and Rafiquzzaman, 1995).Within this field, it is possible to analyse the relationship between ex-ante features of entry, survival and, in the case of survival, post-entry performance of newborn firms, which can be measured in terms of employment growth, profitability or market penetration.For instance, some of these studies have discovered a positive relationship between startup size and survival (see Audretsch and Mahmood, 1995;Mata, Portugal and Guimaraes, 1995; for more controversial results, see Audretsch, Santarelli and Vivarelli, 1999a;and Agarval and Audretsch, 2001). Others have found a negative relationship between start-up size and post-entry growth, thus rejecting Gibrat's Law (see Gibrat, 1931;Hall, 1987;Evans, 1987;Dunne and Hughes, 1994;Hart and Oulton, 1996;Sutton, 1997;Vivarelli, 2001 and.…”

mentioning

confidence: 99%

Entrepreneurship and the process of firms' entry, survival and growth

Santarelli¹,

Vivarelli²

2007

Industrial and Corporate Change

401

253

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu IZA DP No. 2475 Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated Entrepreneurship and the Process of Firms' Entry, Survival and Growth Enrico Santarelli Marco Vivarelli D I S C U S S I O N P A P E R S E R I E SThe Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public.IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT Entrepreneurship and the Process of Firms' Entry, Survival and GrowthThis survey paper aims at critically discussing the recent literature on firm formation and survival and the growth of new-born firms. The basic purpose is to single out the microeconomic entrepreneurial foundations of industrial dynamics (entry and exit) and to characterise the founder's ex-ante features in terms of likely ex-post business performance. The main conclusion is that entry of new firms is heterogeneous with innovative entrepreneurs being found together with passive followers, over-optimist gamblers and even escapees from unemployment. Since founders are heterogeneous and may make "entry mistakes", policy incentives sh...

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The survival of new plants: Start-up conditions and post-entry evolution

Cited by 426 publications

References 22 publications

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Entrepreneurship, Regional Development and Job Creation: The Case of Portugal

Firm survival: The role of incubators and business characteristics

Entrepreneurship and the process of firms' entry, survival and growth

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