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Empirica

, Volume 35, Issue 1, pp 25–39 | Cite as

New small firm survival in England

  • George SaridakisEmail author
  • Kevin Mole
  • David J. Storey
Original paper

Abstract

This paper investigates the determinants of the survival, between 2001 and 2004, of 622 small firms in England. Seventy one percent of these firms were less than 5 years old in 2001. Prior work by industrial economists has primarily focussed upon factors such as profitability and exit barriers. In contrast, this paper adopts a more managerial approach by examining whether the human capital of the business owner and organisational variables explain survival and non-survival. Our results suggest the founder’s education and bank finance promote firm survival. Firms which compete on price, or report being financially constrained at start-up, are much less likely to survive.

Keywords

Firms Business failure Duration 

JEL Classification

L11 L25 

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Copyright information

© Springer Science+Business Media, LLC. 2007

Authors and Affiliations

  • George Saridakis
    • 1
    Email author
  • Kevin Mole
    • 2
  • David J. Storey
    • 2
  1. 1.The Business SchoolLoughborough UniversityLoughborough, LeicestershireUK
  2. 2.Centre for Small and Medium Sized Enterprises, Warwick Business SchoolUniversity of WarwickCoventryUK

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