Determinants of Survival of Newly Created SMEs in the Brazilian Manufacturing: An Econometric Study

21 Pages Posted: 21 Feb 2012

See all articles by Luis Otavio Facanha

Luis Otavio Facanha

Universidade Federal do Rio de Janeiro (UFRJ)

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Vicente Cardoso

Banco Nacional de Desenvolvimento Econômico e Social (BNDES)

Date Written: February 21, 2012

Abstract

The paper investigates the survival of newly created small and medium enterprises in Brazilian manufacturing taking as reference the 1996-2005 period. The econometric analysis relies on time-varying version of the proportional hazard rate model that controls for unobserved heterogeneity. The evidence mostly corroborates previous findings for developed countries. Salient results include the positive role played by firm size, industry size and industry growth on survival and yet the negative influence exerted by industrial concentration and entry rate.

Keywords: survival, small and medium enterprises, manufacturing industry

JEL Classification: L250, M210

Suggested Citation

Facanha, Luis Otavio and Resende, Marcelo and Cardoso, Vicente, Determinants of Survival of Newly Created SMEs in the Brazilian Manufacturing: An Econometric Study (February 21, 2012). CESifo Working Paper Series No. 3735, Available at SSRN: https://ssrn.com/abstract=2008608

Luis Otavio Facanha

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Rio de Janeiro RJ 21949, 23890000
Brazil

Marcelo Resende (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Vicente Cardoso

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) ( email )

Av. Republica do Chile
100 - 12nd. Floor
100 Rio de Janeiro, 20001-970
Brazil

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