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Journal of Evolutionary Economics

, Volume 23, Issue 4, pp 719–733 | Cite as

Start-ups, long- and short-term survivors, and their contribution to employment growth

  • Michael Fritsch
  • Florian Noseleit
Regular Article

Abstract

This study documents that the survival of start-ups is central in explaining the relationship between entry and regional employment growth. Distinguishing between start-ups according to the period of their survival shows that the positive effect of new business formation on employment growth is mainly driven by those new businesses that are strong enough to remain in the market for a certain period of time. This result is especially pronounced for the relationship between the surviving start-ups and employment growth in incumbent businesses indicating that there are significantly positive indirect effects of new business formation on regional development. We draw conclusions for policy and make suggestions for further research.

Keywords

Entrepreneurship New business formation Regional development Direct and indirect effects 

JEL Classification

L26 M13 O1 O18 R11 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.School of Economics and Business AdministrationFriedrich Schiller University JenaJenaGermany
  2. 2.Faculty of Economics and BusinessUniversity of GroningenGroningenThe Netherlands

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