On the different survival rates of Portuguese microbusinesses – the case of projects supported by microcredit

Paulo Mourão

Applied Economics, 2020, vol. 52, issue 31, 3391-3405

Abstract: In spite of their importance to the micro-entrepreneur’s life, Portuguese microbusinesses exhibit a short duration in activity. However, until now there has been scarce attention about the determinants characterizing the microbusiness and/or the micro-entrepreneur. This paper is based on a very comprehensive survey distributed to the microcredit borrowers in Portugal. The main empirical findings suggest that more mature entrepreneurs, with family support, a permanent set of customers, and an awareness of the quality of their goods and services exhibit lower hazard rates of finishing the business. Conversely, high-fixed costs, bad business locations, and periods of economic crisis significantly reduce the duration of the business.

Date: 2020
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DOI: 10.1080/00036846.2019.1710456

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