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Determinants of survival of newly created SMEs in the Brazilian manufacturing industry: an econometric study

Author

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  • Marcelo Resende

    (Universidade Federal do Rio de Janeiro)

  • Vicente Cardoso

    (Banco Nacional de Desenvolvimento Econômico e Social-BNDES)

  • Luis Otávio Façanha

Abstract

This paper investigates the survival of newly created small and medium enterprises in Brazilian manufacturing. It takes as a reference newly created firms in 1996 that are followed until 2005. The econometric analysis relies on a time-varying version of Cox’s proportional hazards model. The evidence mostly corroborates previous findings for developed countries. Salient results include the positive role played by firm size, industry size and industry growth on survival and the negative influence exerted by the minimum efficient scale and the suboptimal scale.

Suggested Citation

  • Marcelo Resende & Vicente Cardoso & Luis Otávio Façanha, 2016. "Determinants of survival of newly created SMEs in the Brazilian manufacturing industry: an econometric study," Empirical Economics, Springer, vol. 50(4), pages 1255-1274, June.
    • Handle: RePEc:spr:empeco:v:50:y:2016:i:4:d:10.1007_s00181-015-0981-4
    DOI: 10.1007/s00181-015-0981-4
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    3. Marisa Reis Azevedo Botelho & Graciele Fátima Sousa & Michelle Castro Carrijo & Juliene Barbosa Ferreira & Ariana Cericatto Silva, 2022. "Survival determinants for Brazilian companies, 1996 to 2016," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 233-266, June.
    4. Kemal Türkcan & Hilal Erkuş-Öztürk, 2020. "The impact of economic and political crises on the survival of tourism-related firms: Evidence from Antalya," Tourism Economics, , vol. 26(7), pages 1152-1174, November.
    5. Víctor Manuel Bellido‐Jiménez & Domingo Martín‐Martín & Isidoro Romero, 2021. "The survival of new businesses in Andalusia (Spain): Impact of urbanization, education, and gender," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 25-41, February.
    6. Bellido-Jiménez, Víctor Manuel & Martín-Martín, Domingo & Romero Luna, Isidoro, 2022. "Autoempleo en inmigrantes y supervivencia empresarial de los negocios incubados en Andalucía," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 52, pages 59-80.
    7. Weiyu Wang & Maria João Guedes, 2025. "Timing and experience in global markets: unraveling the impact of servitization on new manufacturing venture survival," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-27, December.

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