New Small Firms and Dimensions of Economic Performance
Economic Development Quarterly Volume 29, Issue 1, 13 February 2015: 65-78
38 Pages Posted: 3 Jul 2009 Last revised: 2 Mar 2015
Date Written: January 22, 2009
Using data from US labour market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities and growth rates of several income and employment variables. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects of entry than previously documented, and point to several potential tradeoffs associated with entry by small firms.
Keywords: growth, stability, employment, entry
JEL Classification: O1, J23, M13
Suggested Citation: Suggested Citation