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How Fast Do Newly Founded Firms Mature?

In: Entrepreneurship in the Region

Author

Listed:
  • Udo Brixy
  • Susanne Kohaut
  • Claus Schnabel

Abstract

Economic policy in Germany strongly stimulates the founding of new firms, not least because politicians hope that new firms may create the additional employment that is so desperately needed in Germany. In order to find out whether this is really the case and how successful new firms are, a growing empirical literature has studied the performance of new firms at various levels of aggregation. At the micro level, i.e. using data of individual firms or establishments, quite a few studies have been published in the last decade that analyze the success of newly founded firms over the years in terms of survival rates, employment growth, and other indicators of firm performance (see, e.g., Wagner, 1994; Bruderl et al., 1996; Brixy and Kohaut, 1999; Almus, 2002). From a macro perspective, using the concepts of job creation, job destruction and job turnover, a number of studies have tried to identify the extent to which new firms contribute to aggregate employment growth (see, e.g., Boeri and Cramer, 1991; Bellmann et al, 1996; Gerlach and Wagner, 1997; Turk 2002; Brixy and Grotz, 2004).1

Suggested Citation

  • Udo Brixy & Susanne Kohaut & Claus Schnabel, 2006. "How Fast Do Newly Founded Firms Mature?," International Studies in Entrepreneurship, in: Michael Fritsch & Juergen Schmude (ed.), Entrepreneurship in the Region, chapter 6, pages 95-112, Springer.
    • Handle: RePEc:spr:inschp:978-0-387-28376-0_6
    DOI: 10.1007/0-387-28376-5_6
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    Citations

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    Cited by:

    1. Pål Børing, 2020. "Effect of Firms’ Age on Their Use of Highly Skilled Workers," LABOUR, CEIS, vol. 34(2), pages 137-153, June.
    2. Daniel Fackler & Claus Schnabel & Joachim Wagner, 2013. "Establishment exits in Germany: the role of size and age," Small Business Economics, Springer, vol. 41(3), pages 683-700, October.
    3. Merkl, Christian & Stüber, Heiko, 2024. "Wage and employment cyclicalities at the establishment level," European Economic Review, Elsevier, vol. 161(C).
    4. Daniel Fackler & Lisa Hölscher & Claus Schnabel & Antje Weyh, 2022. "Does working at a start-up pay off?," Small Business Economics, Springer, vol. 58(4), pages 2211-2233, April.
    5. Elisabeth Bublitz & Kristian Nielsen & Florian Noseleit & Bram Timmermans, 2018. "Entrepreneurship, human capital, and labor demand: a story of signaling and matching," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 269-287.
    6. Hauptmann, Andreas & Sirries, Steffen & Stepanok, Ignat, 2019. "Arbeitskräftefluktuation im Verarbeitenden Gewerbe: In exportierenden Betrieben ist die Beschäftigung stabiler (Labour turnover in manufacturing industries : More stable employment in exporting establ," IAB-Kurzbericht 201904, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Claus Schnabel & Susanne Kohaut & Udo Brixy, 2011. "Employment stability in newly founded firms: a matching approach using linked employer–employee data from Germany," Small Business Economics, Springer, vol. 36(1), pages 85-100, January.
    8. Heckmann, Markus & Schnabel, Claus, 2005. "Überleben und Beschäftigungsentwicklung neu gegründeter Betriebe," Discussion Papers 39, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    9. Jochen Späth, 2013. "Non-standard Employment, Working Time Arrangements, Establishment Entry and Exit," IAW Discussion Papers 98, Institut für Angewandte Wirtschaftsforschung (IAW).

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