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Bursting into life: firm growth and growth persistence by age

PublicationArticle (with peer review)
Alex Coad, Daniel Halvarsson, Företagandets villkor, Företagstillväxt, Nyföretagande, Sven-Olov Daunfeldt

Abstract

Is firm growth more persistent for young or old firms? Theory gives us no clear guidance, and previous empirical investigations have been hampered by a lack of detailed data on firm age, as well as a non-representative coverage of young firms. We overcome these shortcomings using a rich dataset on all limited liability firms in Sweden during 1998–2008, covering firms of all ages and information on registered start year. Sales growth for new ventures is characterized by positive persistence, which quickly turns negative as firms get older. Young firms are more likely to have two consecutive periods of positive growth. While new firms experience an early burst of sustained growth, older firms have more erratic growth paths.
Related content: Working Paper No. 264

Coad, A., Daunfeldt, S-O., & Halvarsson, D. (2018). Bursting into life: firm growth and growth persistence by age. Small Business Economics, 50(1), 55-75. DOI: 10.1007/s11187-017-9872-8

Details

Author

Coad, A., Daunfeldt, S-O., & Halvarsson, D.

Publication year

2018

Published in

Small Business Economics

Related

Daniel Halvarsson
Ph.D.

+460760184541

daniel.halvarsson@ratio.se

Sven-Olov Daunfeldt
Associate Researcher

+46702957284

sven-olov.daunfeldt@huiresearch.se

Alex Coad
Associate Researcher

+441273 877128

alex.coad@waseda.jp

About

  • About us

    • About
    • Contact us

  • Media

    • News archive

  • Cooperations

    • Eli F. Heckscher Lectures

Research

  • Areas

    • Labour Market Research
    • Competitiveness Research
    • Climate and Environmental Research

  • Ongoing research

    • Working Paper Series
  • People

    • Publications

    • Publications

      • Publications

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    Published in

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