Survival chances of new businesses: do regional conditions matter?

Oliver Falck

Applied Economics, 2007, vol. 39, issue 16, 2039-2048

Abstract: This article analyses the effects of industry-, regional- and firm-level characteristics on the post-entry performance of new businesses by means of an econometric survival time model. First preference is given to an accelerated failure time model assuming a log-logistic distribution. The data involve a representative sample of businesses in the private sector of West Germany during 1993 to 2002 period. The results demonstrate that the regional dimension is most important; whereas firm-level characteristics play a subordinated role.

Date: 2007
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DOI: 10.1080/00036840600749615

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