The post-entry performance of new small firms in German manufacturing-industries
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In: Journal of Industrial Economics, Vol. 42, No. 2, 01.06.1994, p. 141-154.
Research output: Journal contributions › Journal articles › Research › peer-review
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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 -