How Does Firm Survival Differ between Business Takeovers and New Venture Start-Ups?

29 Pages Posted: 5 Dec 2017

See all articles by Guoqian Xi

Guoqian Xi

Shanghai University of Finance and Economics - College of Business

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Frank Lasch

Montpellier Business School; Montpellier Research in Management

Frank Robert

Montpellier Business School

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Abstract

Focusing on entrepreneurship entry modes, we investigate two research questions regarding firm survival: how does the survival probability differ between business takeovers and new venture start-ups? And how do the determinants of survival differ between the two entry modes? Using a large French dataset, we find that business takeovers have a higher survival chance than new venture start-ups. Yet, the differences between two entry modes partially disappear when controlling for differences in founder and firm characteristics. Moreover, we identify differences in the determinants of survival between the two groups, highlighting the distinction between the two forms of entrepreneurship.

Keywords: new venture start-up, business takeover, firm survival

JEL Classification: L26, M13

Suggested Citation

Xi, Guoqian and Block, Jorn Hendrich and Lasch, Frank and Robert, Frank and Thurik, Roy, How Does Firm Survival Differ between Business Takeovers and New Venture Start-Ups?. IZA Discussion Paper No. 11155, Available at SSRN: https://ssrn.com/abstract=3081387

Guoqian Xi (Contact Author)

Shanghai University of Finance and Economics - College of Business ( email )

777 Guoding Road
Shanghai, 200433
China

Jorn Hendrich Block

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Frank Lasch

Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

HOME PAGE: http://www.montpellier-bs.com/

Montpellier Research in Management ( email )

Place Eugène Bataillon
Montpellier, 34095
France

HOME PAGE: http://www.mrm.univ-montp2.fr/

Frank Robert

Montpellier Business School

2300 Avenue des Moulins
Montpellier, 34080
France

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

HOME PAGE: http://www.thurik.com

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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