New small firms and dimensions of economic performance

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Title: New small firms and dimensions of economic performance
Author: Shaffer, Sherrill ; Hasan, Iftekhar ; Zhou, Mingming
Organization: Bank of Finland
Series: Bank of Finland Research Discussion Papers
Series number: 4/2009
Year of publication: 2009
Publication date: 1.2.2009
Published in: Economic Development Quarterly, Volume 29, Issue 1, 13 February 2015: 65-78
Keywords: USA; pkt; yritykset; vaikutukset; talouskasvu; työllisyys;
Abstract: 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.

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