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

By Michael Fritsch and Florian Noseleit

Abstract

<p>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.</p>

Topics: Entrepreneurship, New business formation; Regional development; Direct and indirect effects; GERMAN REGIONS; BUSINESS; PRODUCTIVITY; INNOVATION; IMPACT; ENTRY; JOBS; /dk/atira/pure/researchoutput/classifications/economics_and_business/verygood; Very Good
Year: 2013
DOI identifier: 10.1007/s00191-012-0301-5
OAI identifier: oai:pure.rug.nl:publications/2fffa678-299e-405f-9349-ff9396e065d0
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