Entry, Exit and Establishment Survival in UK Manufacturing

Abstract

We study entry, exit and survival of UK manufacturing establishments from 1986 to 1991 using the newly released ARD database. We document patterns of entry and exit across industries and over time. We estimate an augmented Cox proportional hazard to examine the survival of new plants in the UK in this period. We ¢nd interactions between survival, size and age of establishment that di¡er between establishments that are singles and part of a group. We speculate that this ¢nding may be consistent with market selection models based on learning.

Towards a new framework for SMEs success: a literature review

“…Storey (2000) also agrees that, in general, younger firms tend to grow more rapidly but he identifies sector differences. Disney et al (2003) further concludes that the slowdown in growth in older SMEs is due to: (i) a slackening in entrepreneurial motivation, once the business owner has achieved a satisfactory level of income; (ii) the firm may have moved beyond its minimum efficiency level and (iii) diseconomies may have emerged with the need to employ and manage others. Regardless of the rates of growth, and as already discussed earlier, SMEs exhibit high risks of failure in the first years of operation (Baldwin et al, 2000;Disney et al, 2003;Franco and Haase, 2009;Gray et al, 2012;Ropega, 2011) supporting the argument that the younger the company is, the more likely it is to fail.…”

The impact of aging and technological relatedness on agglomeration externalities: a survival analysis

“…Most of these studies have looked at survival of firms or plants with respect to their size and age (Disney et al, 2003), pre-entry experience (Thompson, 2005), the structure of the market (Cantner et al, 2006;Buenstorf, 2007), the maturity of the industry (Agarwal and Gort, 2002), or combinations of these dimensions (Klepper, 2002). Bernard and Jensen (2007) investigate the influence of a wide variety of plant and firm characteristics.…”

Lingering illness or sudden death? Pre-exit employment developments in German establishments

“…Therefore, these agents are interested to know how likely a firm is to survive, what determines firm exits, and whether there is a "shadow of death" visible already some time before a firm finally closes down, thus making preventive actions possible. Although there is some literature on the determinants of firm exits (e.g., Disney et al, 2003 for the UK; Bernard and Jensen, 2007 for the United States; Bellone et al, 2008 for France;Box, 2008 for Sweden;Esteve-Pérez and Mañez-Castillejo, 2008 for Spain; Fackler et al, 2013 for Germany), much less is known about the processes taking place before closure. In order to fill this research gap, this article analyzes whether firm closures occur suddenly and unexpectedly or whether employment processes can be observed that indicate an upcoming closure.…”