When is a Firm Born? Alternative Criteria and Consequences

Paul Davidson Reynolds ()
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Paul Davidson Reynolds: Aston Business School

Business Economics, 2017, vol. 52, issue 1, No 6, 56 pages

Abstract: Abstract There are a number of ways to determine the birth date of a new firm. These include the date of a start-up venture’s initial transactions, initial registry listing, initial labor input, and initial profits. Utilizing the responses from the second Panel Study of Entrepreneurial Dynamics (PSED) cohort, it appears that different criteria for a firm’s birth date are associated with substantial differences in the proportion of start-ups that became new firms, the time required to become a new firm, survival following a new firm birth, and the provision of new jobs. This variation may help explain some inconsistent research findings related to firm births.

Keywords: firm births; firm start-ups; firm survival; firm birth criteria; PSED (search for similar items in EconPapers)
JEL-codes: L25 L26 M13 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (12)

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DOI: 10.1057/s11369-017-0022-8

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