New small firms and dimensions of economic performance

Discussion Papers
New small firms and dimensions of economic performance
4/2009
Author(s):
Sherrill Shaffer – Iftekhar Hasan – Mingming Zhou
2009. 35 pages.
Publisher:
Bank of Finland
ISBN:
978-952-462-488-6
(Printed publication)
ISBN:
978-952-462-489-3
(Web publication)
ISSN:
0785-3572
(Printed publication)
ISSN:
1456-6184
(Web publication)
 
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.