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The Survival and Growth of New Establishments in Sweden, 1987-1995

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Abstract

The aim of the study is to examine the survival of new establishments and to identify factors affecting their survival probability and their employment growth.This study uses a unique data set on all new establishments that were created in Sweden 1987 and 1988, with the exception of the construction industry. The results show among others that:(i) new establishments face a high risk of closing down, (ii) the probability of establishment survival increases with the age and size of the establishment,(iii) variables that are assumed to measure access to resources (being a part of a multi-unit firm,and being new due to merger or dispersal) have a positive effect on survival, (iv) the number of employees at the start- up year has a negative effect on the employment growth, and (v) demographic and educational factors are important in explaining survival and growth.

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  1. Swedish Institute for Social Research, Stockholm University, S-106 91, Stockholm, Sweden

    Helena Persson

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  1. Helena Persson
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Correspondence to Helena Persson.

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Persson, H. The Survival and Growth of New Establishments in Sweden, 1987-1995. Small Bus Econ 23, 423–440 (2004). https://doi.org/10.1007/s11187-004-3992-7

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  • DOI: https://doi.org/10.1007/s11187-004-3992-7

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