# 97-063/3 (1997-06-13)

David B. Audretsch, The Georgia State University; Patrick Houweling, Centre for Advanced Small Business Economics, Erasmus University Rotterdam; A. Roy Thurik, EIM Small Business Research and Consultancy and Erasmus University Rotterdam

Recent studies show that the likelihood of survival differs significantly across firms. Both firm and industry characteristics are hypothesized to account for this heterogenity. Using a longitudinal database of manufacturing firms we investigate whether firm or industry characteristics dominate. Our evidence suggests that both firm- and industry-specific characteristics shape new-firm survival during the first years subsequent to entry. However, in the longer run, most of the industry factors have little influence on the likelihood of survival, but firm-specific characteristics still exert a considerable influence in shaping firm survival rates.