The Survival and Growth of New Establishments in Sweden, 1987-1995

Helena Persson ()

Small Business Economics, 2004, vol. 23, issue 5, 423-440

Abstract: The aim of the study is to examine the survival of new establishments and to identify factors affecting their survival probability and their employment growth.This study uses a unique data set on all new establishments that were created in Sweden 1987 and 1988, with the exception of the construction industry. The results show among others that:(i) new establishments face a high risk of closing down, (ii) the probability of establishment survival increases with the age and size of the establishment,(iii) variables that are assumed to measure access to resources (being a part of a multi-unit firm,and being new due to merger or dispersal) have a positive effect on survival, (iv) the number of employees at the start- up year has a negative effect on the employment growth, and (v) demographic and educational factors are important in explaining survival and growth. Copyright Kluwer Academic Publishers 2004

Date: 2004
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DOI: 10.1007/s11187-004-3992-7

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