Small Firm Births and Macroeconomic Fluctuations

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Abstrakt

Using different definitions of what constitutes a small firm, this paper analyses the effect of business conditions on the start-up of small firms. It is found that small firm births exhibit a pro-cyclical behaviour, irrespective of the threshold used to define a small firm. The smallest new firms, however, seem to be less responsive to the opportunity cost of capital. Finally, no relationship was found between entry of small firms and industry growth and profiability.
OriginalsprogEngelsk
TidsskriftReview of Industrial Organization
Vol/bind11
Udgave nummer2
Sider (fra-til)173-182
Antal sider10
ISSN0889-938X
DOI
StatusUdgivet - apr. 1996
Udgivet eksterntJa

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