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.
# 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