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Entrepreneurship and survival over the business cycle: how do new technology-based firms differ?

Ejermo, Olof LU and Xiao, Jing LU (2014) In Small Business Economics 43(2). p.411-426
Abstract
We investigate the survival performance of new technology-based firms (NTBFs) over the business cycle and compare them against other entrepreneurial firms. Our data comprise the entire population of entrepreneurial firms entering the Swedish economy from 1991 to 2002, which we follow until 2007. Discrete-time duration models are employed to investigate whether the business cycle impacts differently on the survival likelihood of NTBFs vis-A -vis other entrepreneurial firms. Our main findings are three. First, NTBFs generally experience a lower hazard rate compared to other entrepreneurial firms, which is interpreted as a sign of their high 'quality.' Second, all entrepreneurial firms are sensitive to and follow a pro-cyclical pattern of... (More)
We investigate the survival performance of new technology-based firms (NTBFs) over the business cycle and compare them against other entrepreneurial firms. Our data comprise the entire population of entrepreneurial firms entering the Swedish economy from 1991 to 2002, which we follow until 2007. Discrete-time duration models are employed to investigate whether the business cycle impacts differently on the survival likelihood of NTBFs vis-A -vis other entrepreneurial firms. Our main findings are three. First, NTBFs generally experience a lower hazard rate compared to other entrepreneurial firms, which is interpreted as a sign of their high 'quality.' Second, all entrepreneurial firms are sensitive to and follow a pro-cyclical pattern of survival likelihood over the business cycle. Three, when comparing NTBFs with the broader group of other entrepreneurial firms, we find that NTBFs are more sensitive to business cycle fluctuations. The above results come with a qualification, though. The sensitivity during the business cycle mainly pertains to self-employed NTBFs. Also, NTBFs' higher survivability is only linked to not being characterized as self-employed. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
New technology-based firms, Exit, Survival probability, The business, cycle, Discrete-time duration models, Sweden
in
Small Business Economics
volume
43
issue
2
pages
411 - 426
publisher
Springer
external identifiers
  • wos:000339333000010
  • scopus:84904166935
ISSN
0921-898X
DOI
10.1007/s11187-014-9543-y
language
English
LU publication?
yes
id
d1973fc8-6c53-4b1e-b6a6-9530aa8ebb43 (old id 4591915)
date added to LUP
2014-09-05 11:12:34
date last changed
2017-08-27 03:40:19
@article{d1973fc8-6c53-4b1e-b6a6-9530aa8ebb43,
  abstract     = {We investigate the survival performance of new technology-based firms (NTBFs) over the business cycle and compare them against other entrepreneurial firms. Our data comprise the entire population of entrepreneurial firms entering the Swedish economy from 1991 to 2002, which we follow until 2007. Discrete-time duration models are employed to investigate whether the business cycle impacts differently on the survival likelihood of NTBFs vis-A -vis other entrepreneurial firms. Our main findings are three. First, NTBFs generally experience a lower hazard rate compared to other entrepreneurial firms, which is interpreted as a sign of their high 'quality.' Second, all entrepreneurial firms are sensitive to and follow a pro-cyclical pattern of survival likelihood over the business cycle. Three, when comparing NTBFs with the broader group of other entrepreneurial firms, we find that NTBFs are more sensitive to business cycle fluctuations. The above results come with a qualification, though. The sensitivity during the business cycle mainly pertains to self-employed NTBFs. Also, NTBFs' higher survivability is only linked to not being characterized as self-employed.},
  author       = {Ejermo, Olof and Xiao, Jing},
  issn         = {0921-898X},
  keyword      = {New technology-based firms,Exit,Survival probability,The business,cycle,Discrete-time duration models,Sweden},
  language     = {eng},
  number       = {2},
  pages        = {411--426},
  publisher    = {Springer},
  series       = {Small Business Economics},
  title        = {Entrepreneurship and survival over the business cycle: how do new technology-based firms differ?},
  url          = {http://dx.doi.org/10.1007/s11187-014-9543-y},
  volume       = {43},
  year         = {2014},
}