Entrepreneurship Dynamics in Australia: Lessons from Micro-Data

37 Pages Posted: 24 Mar 2017 Last revised: 30 Oct 2017

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2017

Abstract

Using a large firm-level dataset covering years 2002 to 2015, I explore the dynamics of entrepreneurship in Australia and their evolution over time. The short answer is that the Australian entrepreneurial landscape has become less dynamic and more hazardous over the observed period. With time passing, relatively fewer entrepreneurs are entering the market, and those that enter are more likely to exit than their counterparts that entered in earlier years. In particular, there is a seemingly permanent increase in exit rate starting from the cohort of 2005 entries, followed by a temporary spike after the Global Financial Crisis (GFC). Despite fewer firms entering, the share of young firms from job creation has been steadily high. I finish by offering a few thoughts to help understand these changes.

Keywords: Entrepreneurship, Survival, Job Creation, Competition, Growth

JEL Classification: C55, L26, M13, Q33

Suggested Citation

Bakhtiari, Sasan, Entrepreneurship Dynamics in Australia: Lessons from Micro-Data (September 1, 2017). Available at SSRN: https://ssrn.com/abstract=2940093 or http://dx.doi.org/10.2139/ssrn.2940093

Sasan Bakhtiari (Contact Author)

Australian Department of Industry ( email )

341 George Street
Sydney, NSW 2000
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

Crawford School, ANU ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

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