<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This article discusses the determinants of the survival of new companies, with particular emphasis on their sources of financing. We have analysed the impact of experience in the same focal industry, of having a competitive advantage and intellectual property rights (patents and trademarks) and of debt financing on the probability of a start-up's survival, using a logit model based on the Kauffman Firm Survey (KFS) database data covering 4,928 American companies which operated from 2004 to 2011. Additionally, we can demonstrate that start-ups that use debt financing have a better chance of staying in business. Factors such as intellectual capital and competitive advantage are also positively correlated with the prospects for start-up survival.</p></abstract>

This article discusses the determinants of the survival of new companies, with particular emphasis on their sources of financing. We have analysed the impact of experience in the same focal industry, of having a competitive advantage and intellectual property rights (patents and trademarks) and of debt financing on the probability of a start-up's survival, using a logit model based on the Kauffman Firm Survey (KFS) database data covering 4,928 American companies which operated from 2004 to 2011. Additionally, we can demonstrate that start-ups that use debt financing have a better chance of staying in business. Factors such as intellectual capital and competitive advantage are also positively correlated with the prospects for start-up survival.

Factors Determining the Survival of New Companies

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Factors Determining the Survival of New Companies"}

This article discusses the determinants of the survival of new companies, with particular emphasis on their sources of financing. We have analysed the impact...

Factors Determining the Survival of New Companies

Published Online: Dec 31, 2020

Page range: 300 - 315

DOI: https://doi.org/10.2478/ceej-2020-0021

Keywords
start-up, survival of new companies, sources of financing

© 2020 Marlena Cegiełka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Factors Determining the Survival of New Companies

Published Online: Dec 31, 2020

Page range: 300 - 315

DOI: https://doi.org/10.2478/ceej-2020-0021

Keywordsstart-up, survival of new companies, sources of financing

© 2020 Marlena Cegiełka, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
start-up, survival of new companies, sources of financing