Why do Most Firms Die Young?

By R. Cressy. 2006

310 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/e33340b3184dbbead1ad539f41158f555ee08ea7

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Citations in the corpus

Building an integrative model of small business growth (2009, background): “…propose that managers with considerable human capital know where to look for opportunities (Shane 2000), can more accurately assess the value of potential opportunities (Venkataraman 1997), and have the ability to exploit these opportunities (Cressy 2006; Kim et al. 2006), which encourages an EO.”
Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries (2013, background): “local wages in the same sector, taking into account the surrounding environmental conditions and the risk differential between the two occupational alternatives (Kihlstrom and Laffont, 1979; Parker, 1997; Cressy, 2006; Klepper, 2009).”
Entrepreneurship and the Process of Firms' Entry, Survival and Growth (2007, unknown): “Secondly, since founders are heterogeneous and may make “entry mistakes”, most new firms are doomed to early failure; this type of entry is not conducive to technological renewal and economic growth, but simply to excess of entry, market churning and turbulence (this is well mirrored by the…”
Effect of credit guarantee policy on survival and performance of SMEs in Republic of Korea (2008, background): “new small irms are determined by various factors su h as hu an capital and entrepreneurship (Colombo et al., 2004; Colombo & Grilli, 2005; Cressy 2006), entrance time (Honjo, 2000), location (Scott, 2006; Stearns, Carter, Re nolds, & Williams, 1995), and labor market and regional support (Heshmati, ”
“To have and have not”: founders’ human capital and university start-up survival (2013, background): “The former dimension, i.e. opportunity cost, positively affects the organization’s threshold of performance because the higher the opportunity cost, the better the performance required by the entrepreneurs to remain in the business (see also Cressy 2006).”
The Resource-Based Theory of the Firm and Firm Survival (2008, background): “The theoretical models of firm and industry dynamics (for instance, Cressy, 2006; Ericson and Pakes, 1995; Jovanovic, 1982) lead to failure rates that vary with firm age.”
How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective (2019, background): “There has been considerable empirical research on how financial risk attitude is related to success in the SME sector [68,74,75].”
Determinants of capital structure in Irish SMEs (2010, background): “Small firms are also at a greater risk of financial distress and ‘‘young firms are more failure prone than older ones’’ (Cressy 2006).”
Identification of domains for a new conceptual model of strategic entrepreneurship using the configuration approach (2011, background): “As most firms die young (Cressy, 2006), typically in their first three years of existence, studying successful configurations of the initial years of firms would be especially beneficial.”
Entrepreneurship and structural economic transformation (2008, background): “16 Cressy (2006: 103) notes the high failure rate of most new firms citing the finding that up to 50 per cent of new firms exit the market after 18 to 24 months. outsourcing contracts with existing start-up firms if the surplus of alternative business ideas is high.”
Regulatory environments and the location decision: evidence from the early foreign market entries of new-technology-based firms (2008, unknown): “Given that a majority of new firms will die within three years of formation (Cressy, 2006), the computation of transactions costs is not merely the determination of net incremental benefit.”
Optimism and chance: The elephants in the entrepreneurship room (2011, background): “Closure rates for new and small firms are documented by Headd (2003) for the USA and Cressy (2006) and Frankish et al. (2010) for the UK.”