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A Note on Small Business Survival Rates in Rural Areas: The Case of Washington State
Author(s) -
FORSYTH GRANT D.
Publication year - 2005
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.2005.00284.x
Subject(s) - duration (music) , cohort , revenue , survival analysis , hazard , economics , business , actuarial science , finance , statistics , art , chemistry , literature , mathematics , organic chemistry
Using Washington State Department of Revenue and Employment Security Department data, this article uses non‐parametric duration analysis to examine the nine‐year time path of rural firm survival and hazard rates. The focus is on a cohort of rural firms that started operations in 1992; the cohort is followed up to the year 2000. Survival rates are estimated by using standard non‐parametric (life‐table) duration analysis. Using straightforward statistical tests, the study finds evidence that survival rates are statistically higher for firms that start as employers and for firms in the natural resource and service‐based sectors.