New enterprises are a source of economic growth, innovation, structural change and em-ployment. However, new firms face a serious problem of high mortality subsequent to their entry into the market. Thus the goal of this thesis paper was to identify survival factors of newly founded firms. This incorporated first to identify existing theoretical frameworks of SFR and second to provide insights into some empirical key findings for some important survival factors of newly founded businesses within the existing literature. In the core part of this paper, a crude systematization of success determinants into personal, firm-specific and environmental factors was used. The analysis of literature on firm survival and success factors revealed a mixed picture as different studies came up with contradicting results. Only few key findings were revealed to have consistent re-sults, which are further presented and discussed in this paper. Furthermore, a critical review of the success factor literature revealed also that utilization of different success measures, biased and unrepresentative samples, inappropriate analytical methods and the lack of a theory-driven approach all contribute to inconsistent results. Finally, it was also identified that the research community faces a paucity of literature in the field of regional and pre-entry determinants and how they impact on business success and survival.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER - INTRODUCTION
- CHAPTER - CENTRAL TERMINOLOGY
- 2.1 BUSINESS SUCCESS
- 2.2 BUSINESS FAILURE
- 2.3 CLASSIFICATION OF NEWLY FOUNDED FIRMS
- CHAPTER – THEORETICAL FRAMEWORKS AND EMPIRICAL EVIDENCE
- 3.1 PERSONAL FACTORS
- 3.1.1 Human Capital Theory
- 3.1.2 Empirical Evidence
- 3.1.3 Social Capital Theory
- 3.1.4 Empirical Evidence
- 3.2 FIRM-SPECIFIC FACTORS
- 3.2.1 Transaction Cost Theory
- 3.2.2 Learning Theory
- 3.2.3 Empirical Evidence
- 3.3 ENVIRONMENTAL FACTORS
- 3.3.1 Organizational Ecology Theory
- 3.3.2 Empirical Evidence
- 3.1 PERSONAL FACTORS
- CHAPTER - CRITICAL REVIEW OF THE SUCCESS FACTOR RESEARCH
- CHAPTER – CONCLUSION AND OUTLOOK
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to explore the factors contributing to the success of newly founded firms. It examines various theoretical frameworks and empirical evidence related to personal, firm-specific, and environmental factors that influence business survival. The research delves into the complexities of entrepreneurship and seeks to identify key drivers of success in the early stages of business development.
- Personal factors, including human capital and social capital, and their impact on firm success.
- Firm-specific factors, such as transaction costs, learning theory, and their role in fostering sustainable growth.
- Environmental factors, particularly the influence of organizational ecology, on firm survival and evolution.
- Critical analysis of the success factor research and its limitations.
- An outlook on future research directions and potential areas for further investigation.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction lays the groundwork for the thesis by outlining the research topic and the importance of understanding factors contributing to the success of newly founded firms. The second chapter focuses on central terminology, defining key concepts such as business success, business failure, and classifications of newly founded firms. The third chapter explores various theoretical frameworks and empirical evidence related to personal, firm-specific, and environmental factors influencing firm survival. The chapter examines theories such as human capital theory, social capital theory, transaction cost theory, learning theory, and organizational ecology theory, presenting a comprehensive overview of the existing literature. The fourth chapter critically reviews the success factor research, highlighting both its strengths and limitations. The final chapter, which is not included in this preview, provides concluding remarks and insights into future research directions.
Schlüsselwörter (Keywords)
The main keywords of this thesis are: newly founded firms, business success, business failure, personal factors, human capital theory, social capital theory, firm-specific factors, transaction cost theory, learning theory, environmental factors, organizational ecology theory, success factor research, empirical evidence.
Frequently Asked Questions
Why do newly founded firms face a high mortality rate?
New firms often suffer from a "liability of newness," including a lack of established routines, limited resources, and the challenge of competing with established market players.
What are the main categories of survival factors for new businesses?
Success determinants are generally classified into three categories: personal factors, firm-specific factors, and environmental factors.
What role does "Human Capital" play in firm survival?
Human Capital Theory suggests that the education, experience, and skills of the founder significantly increase the chances of a new firm's success and survival.
How does Social Capital Theory contribute to business success?
Social Capital refers to the networks and relationships of the entrepreneur, which provide access to resources, information, and support vital for the early stages of a firm.
What is Organizational Ecology Theory?
This theory examines how environmental conditions and the "density" of similar organizations in a market impact the birth and death rates of firms.
Why are empirical findings on firm survival often inconsistent?
Inconsistencies often arise from different success measures, biased samples, inappropriate analytical methods, and a lack of a unified theory-driven approach in research.
- Citation du texte
- Wladimir Wiegel (Auteur), 2009, Survival factors of newly founded firms, Munich, GRIN Verlag, https://www.grin.com/document/167384
