Focusing on entrepreneurship entry modes, we investigate two research questions regarding firm survival: how does the survival probability differ between business takeovers and new venture start-ups? And how do the determinants of survival differ between the two entry modes? Using a large French dataset, we find that business takeovers have a higher survival chance than new venture start-ups. Yet, the differences between two entry modes partially disappear when controlling for differences in founder and firm characteristics. Moreover, we identify differences in the determinants of survival between the two groups, highlighting the distinction between the two forms of entrepreneurship.

Additional Metadata
Keywords New venture start-up, business takeover, firm survival
JEL Entrepreneurship (jel L26), New Firms; Startups (jel M13)
Persistent URL hdl.handle.net/1765/105629
Series IZA Discussion Paper Series
Citation
Xi, G, Block, J.H, Lasch, F, Robert, F, & Thurik, A.R. (2017). How Does Firm Survival Differ between Business Takeovers and New Venture Start-Ups? (No. 11155). IZA Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/105629