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Assessing the Non-Financial Predictors of the Success and Failure of Young Firms in the Netherlands

By Ghislain Houben, Willem Bakker and Philip Vergauwem

Abstract

In this study, the Lussier (1995) success and failure prediction model is improved and tested on a sample of Dutch firms. Besides clearly defining a specific business plan, work experience is added as a variable, and contrary to previous researches, the discrete variables are dealt with appropriate this time. The results of this improved model show that product/service timing, planning, management experience, knowledge of marketing, economic timing, professional advice, and having a business partner are predictors of success and failure for young firms in the Netherlands.Business Planning, Small Business, and Success in Business

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