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| Author: | Persson, H. |
| Title: | The survival and growth of new establishments in Sweden, 1987-1995 |
| Journal: | Small business economics
2004 : DEC, VOL. 23:5, p. 423-440 |
| Index terms: | Small business Employment Policy Scandinavia Nordic countries Sweden |
| Freeterms: | SME |
| Language: | eng |
| Abstract: | This paper aims to examine the survival (hereafter as: srvl.) of new establishments (here as: n-estbs., for 'establishment/s' as: estb./estbs.) and to identify factors affecting their srvl. probability in Sweden. The creation of jobs by new firms is often considered to be a solution to the unemployment problem. Up to recently, little has been known about their srvl. possibilities and growth. According to the network success hypotheses, entrepreneurs who can refer to broad and diverse personal network and who receive much support from it are more successful. This study used a unique data set on all n-estbs. created in Sweden btw. 1987 and 1988. The Swedish Employment Register contains the whole population aged 16 or more, in November of each year. The connection with the employer of all those employed and self-employed in Nov. is denoted by the identity numbers of the firm and of the estbs. where each individual had the main work. The results show among others that (i) n-estbs. face a high risk of closing down, (ii) the probability of estbs. srvl. increases with its age and size, and (iii) variables assumed measuring access to resources have a positive effect on survival. |
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