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Survival Analysis of Small Informal Businesses in South Africa, 2007–2010

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  • Andre Ligthelm

Abstract

Annual surveys were conducted among a small business panel of 300 businesses during the four-year period 2007 to 2010 aimed at examining small business survival and mortality. By contrasting the profiles of successful businesses with those that closed their doors, a second objective was also attained, namely the identification of principle reasons for small business survival and sustainability. The survey data were applied in a categorical regression model with business survival as dependent variable and several independent variables related to competitive environment, entrepreneurial endowment and comparative advantages as independent variables. The analysis identified the human factor in small businesses and specifically entrepreneurial actions and business management skills as the strongest predictors of small business survival. Businesses portraying these characteristics should be the focus of small business support strategies. Copyright Eurasia Business and Economics Society 2011

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  • Andre Ligthelm, 2011. "Survival Analysis of Small Informal Businesses in South Africa, 2007–2010," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 1(2), pages 160-179, December.
    • Handle: RePEc:spr:eurasi:v:1:y:2011:i:2:p:160-179
    DOI: 10.14208/BF03353804
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    Cited by:

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    8. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
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