engleski

Firm Survival in European Economies

High business dynamics and turbulence of a particular sector manifested through frequent firm entrances and exits actualizes the question of their survival and the stability of the environment in which they operate. As it takes time before the effect of new firm entry influences economic growth and boosts self- employment and employment in the economy overall, it is important to track their post- entry performance and their survival. It seems that young firms never had poorer chances of survival than its established rivals. Small and medium-sized enterprises are particularly vulnerable. The aim of the paper is to empirically investigate the impact of certain variables on firm survival rate in the information and technology sector. IT sector is often characterized as strategic in most of the European economies but is, due to its service nature, continuous innovations and improvements, often considered as highly turbulent. The empirical model used in the paper consists of panel method where EU10 countries represent cross-sectional component, while the time component covers the period of economic crisis from 2008-2012, which is the last available data within the Eurostat database. Additionally, traditional methods of descriptive statistics are used to emphasize the business dynamics of IT sector and to present information about the newly born enterprises and their ability to survive up to four years after their creation.

business dynamics; firm survival; ict sector; eu10

nije evidentirano