The Process of Firm’s Entry, Survival and Growth: A Conceptual and Empirical Analysis

Abstract: This study aims at providing a better understanding of the process of entrepreneurial activities. By reviewing recent literature on start-ups, it establishes the micro foundations of firm’s entry and exit, etc., and characterizes the features of founder, firm and regional context. Statistical data of start-ups in 2005 and their performance in the following three years are drawn from Statistics Sweden, to allow empirical examination of the theoretical findings. This study suggests that the motivations for entrepreneurial activities are entrepreneurs’ expectations on their characteristics and abilities; and the process of entrepreneurial activities consists of different phases and stages. For entrepreneurs the empirical findings exhibit the irrelevance of financial support, and the negative impacts of partnership. Policy-makers are advised to pay specific attention to regional environment for promoting business performance.