Open AccessFactors Affecting Survival of New Firms in the Financial Crisis: the Role of the Local Milieu
Author(s) -
Josep LladósMasllorens
Publication year - 2022
Publication title -
international journal of economics and statistics
Language(s) - English
Resource type - Journals
ISSN - 2309-0685
DOI - 10.46300/9103.2022.10.18
Subject(s) - leverage (statistics) , financial crisis , logistic regression , productivity , business , sample (material) , finance , financial system , economics , economic growth , macroeconomics , medicine , chemistry , chromatography , machine learning , computer science
This paper investigates how the long-lasting financial crisis is affecting the survival of nascent firms. The target of this research is a sample of 64 firms that benefit from the interaction with a high-technology innovation cluster located in Barcelona (Spain). A logistic regression analysis is conducted to predict survival using a wide set of variables as predictors. The born-global and high productivity ICT firms show the best prediction of success. Financial leverage has played also a critical role in the evolution of businesses whereas milieu effects have been insufficient to overcome the difficulties of financial crisis.