The Economic Contribution of a Cohort of New Firms over Time

21 Pages Posted: 17 Nov 2020

See all articles by Alex Coad

Alex Coad

Waseda University

Julian Frankish

Independent

Albert Link

University of North Carolina (UNC) at Greensboro - Department of Economics

Date Written: July 1, 2020

Abstract

What is the economic contribution of a cohort of new entrants? Previous research has investigated this topic but only in passing, and found conflicting results. We analyze a cohort of 6578 firms that entered in 2004, and track them for 10 years with an emphasis on size, which is measured using (deflated) sales data from the entrepreneurs’ bank account records. The overall economic contribution of the cohort decreases in the years after entry. Post-entry growth is not sufficient to offset the economic loss from high exit rates. Broadly similar results are found when disaggregating by firm size and industry.

Keywords: Cohort, firm size, post-entry growth, survival, entrepreneurship

JEL Classification: L25, L26

Suggested Citation

Coad, Alex and Frankish, Julian and Link, Albert N., The Economic Contribution of a Cohort of New Firms over Time (July 1, 2020). Available at SSRN: https://ssrn.com/abstract=3702763 or http://dx.doi.org/10.2139/ssrn.3702763

Alex Coad (Contact Author)

Waseda University ( email )

1-104 Totsukamachi, Shinjuku-ku
tokyo, 169-8050
Japan

Julian Frankish

Independent ( email )

Albert N. Link

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States
336-334-5146 (Phone)
336-334-4089 (Fax)

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