Newly founded firms and their development: An empirical analysis based on different dimensions of success

We study the development and success of newly founded firms within the first four years of their existence. The objective of the study was to analyze the development in the post-start-up phase based on different dimensions of success, such as survival of business, creation of jobs and coverage of the founders' living expenses. We show that almost three out of four new firms remained in the market. However, only a minority of these firms was able to create new jobs. Also, income from self-employment was only sufficient for about half of the founders to cover their living expenses. This may be a result of different phenomena, such as hybrid types of self-employment, availability of an additional household income and/or the per-sonal perception of (non-monetary) advantages of self-employment.

Brink, S.; Ivens, S.; Nielen, S.; Schlömer-Laufen, N. (2018): Neugegründete Unternehmen und ihre Entwicklung: Eine empirische Analyse anhand verschiedener Erfolgsdimensionen, IfM Bonn: IfM-Materialien Nr. 271, Bonn.

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