Start-up financing, owner characteristics, and survival

Thomas Astebro and Irwin Bernhardt

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Abstract: We investigated the relation between the survival of new small businesses and bank loans. This was done using a model that included other loan sources, human capital variables, and company and industry descriptors. We found there is a negative correlation between having a bank loan and business survival, and a positive correlation between having a non-bank loan and survival. However, having a bank loan was a ceteris paribus positive predictor of the survival of start-up companies. Our findings enabled some inferences about the process of loan source selection by start-up business owners, and about the banks' loan granting process.

Keywords: Bank loans; Start-up business survival; Forecast (search for similar items in EconPapers)
Date: 2003-08
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Citations: View citations in EconPapers (77)

Published in Journal of Economics and Business, 2003, 55 (4), pp.303-320. ⟨10.1016/S0148-6195(03)00029-8⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00480047

DOI: 10.1016/S0148-6195(03)00029-8

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