TY - JOUR

T1 - The post-entry performance of new small firms in German manufacturing-industries

AU - Wagner, Joachim

PY - 1994/6/1

Y1 - 1994/6/1

N2 - While recent years have witnessed a growing interest in research on market entry by new firms, evidence regarding their post-entry performance is scarce. This paper uses longitudinal data for small firms that entered German manufacturing industries between 1979 and 1982 and monitors their performance until 1990. Entrants face a high risk of failure, hazard rates tend to increase during the first years and to decrease afterwards. Decline of employment in a cohort due to exits and shrinking firms is compensated by growing survivors. No clear-cut nexus between start-up size and probability of survival shows up.

AB - While recent years have witnessed a growing interest in research on market entry by new firms, evidence regarding their post-entry performance is scarce. This paper uses longitudinal data for small firms that entered German manufacturing industries between 1979 and 1982 and monitors their performance until 1990. Entrants face a high risk of failure, hazard rates tend to increase during the first years and to decrease afterwards. Decline of employment in a cohort due to exits and shrinking firms is compensated by growing survivors. No clear-cut nexus between start-up size and probability of survival shows up.

KW - Economics

UR - https://www.mendeley.com/catalogue/8f0f71c2-8398-37a0-ac9f-4fc19afceb03/

U2 - 10.2307/2950486

DO - 10.2307/2950486

M3 - Journal articles

VL - 42

SP - 141

EP - 154

JO - Journal of Industrial Economics

JF - Journal of Industrial Economics

SN - 0022-1821

IS - 2

ER -