An analysis of new firm survival using a hazard function

Phil Holmes; Andrew Hunt; Ian Stone

doi:10.1080/00036840701579234

An analysis of new firm survival using a hazard function

Phil Holmes, Andrew Hunt^*, Ian Stone

^*Corresponding author for this work

Plymouth Business School

Research output: Contribution to journal › Article › peer-review

Abstract

A unique dataset is used to provide a detailed examination of the survival of newly-established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macroeconomic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

Original language	English
Pages (from-to)	185
Number of pages	195
Journal	Applied Economics
DOIs	https://doi.org/10.1080/00036840701579234
Publication status	Published - 2010

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title = "An analysis of new firm survival using a hazard function",

abstract = "A unique dataset is used to provide a detailed examination of the survival of newly-established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macroeconomic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.",

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AB - A unique dataset is used to provide a detailed examination of the survival of newly-established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macroeconomic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

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DO - 10.1080/00036840701579234

M3 - Article

SN - 0003-6846

SP - 185

JO - Applied Economics

JF - Applied Economics

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An analysis of new firm survival using a hazard function

Abstract

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