Business Survival and Success of Young Small Business Owners

17 Pages Posted: 4 Nov 2001 Last revised: 8 Nov 2014

See all articles by Mirjam van Praag

Mirjam van Praag

University of Amsterdam - Department of Economics; Copenhagen Business School; Tinbergen Institute; IZA Institute of Labor Economics

Abstract

Little empirical evidence provides insight in person-oriented drivers of business survival and success of small business owners. In this paper I perform a duration analysis of business survival amongst young white (self-employed) small business owners in the US. Compulsory exits are distinguished from voluntary exits. This enables an alternative definition of business success: the longer one can survive and prevent involuntary exit, the more successful one is. Potential drivers of survival are derived from recent empirical evidence in related studies. The potential drivers of success are also derived from historical economic thinkers such as Marshall and Schumpeter. The estimated hazard rates are affected by characteristics of the small business owner and business conditions.

Keywords: Self-employment, Entrepreneurship, Business Survival, Small Business, Success

JEL Classification: C41, G33, J23, M13

Suggested Citation

van Praag, Mirjam and van Praag, Mirjam, Business Survival and Success of Young Small Business Owners. Small Business Economics, Vol. 21, No. 1, 2003, pp. 1-17, Available at SSRN: https://ssrn.com/abstract=289202 or http://dx.doi.org/10.2139/ssrn.289202

Mirjam Van Praag (Contact Author)

University of Amsterdam - Department of Economics ( email )

Roetersstraat 11
Amsterdam, 1018 WB
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+31 20 525 4096 (Phone)
+31 20 525 4182 (Fax)

Copenhagen Business School ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

Tinbergen Institute

Gustav Mahlerlaan
Amsterdam
Netherlands

IZA Institute of Labor Economics

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Germany

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