Firm survival

Firm survival 1. INTRODUCTION During a recent period of time, the topic of firm survival has received increasing academic attention and many of the studies have focused on its determinants. It is well known that entrepreneurial small businesses contribute to the creation of the new jobs and innovations that helps to develop the economy and reduce the poverty. Some firms survive for considerably longer periods while others do not. The purpose of this paper is to discover research findings that are related to either the survival or death of young firms. Starting a business and operating successfully is subject to uncertainty and requires resources and capabilities which is not available for everyone. Government takes action to reduce unemployment by encouraging new venture start-ups. The problem with new businesses is that there is a high possibility of failure. Subsequently, majority of young firms leave the market relatively soon after entering. It is therefore relevant to determine and understand the factors that have an impact on firm survival, as it is the widely used performance measure of the businesses. The next part of the paper is concerned with the firm-based characteristics of fast growing firms. The observations are based on the UK and US comparative study of fast growing enterprises which were conducted in 2008. ‘Business growth is typically defined and measured, using absolute or relative changes in sales, assets, employment, productivity, profits and profit margins (Blackburn et al. 2008). There is no generally accepted definition of fast growth firms, however it is most often defined in terms of having high sales growth rate. The paper is organized as follows: Section 2 provides a review of the literature. In Section 3 differences in firm-based factors between fast growth firms and all other small and medium sized enterprises (SMEs) are discussed. Section 4 provides conclusion. FIRM SURVIVAL DETERMINANTS Large number of research papers on young firm survival focus on the person specific characteristics such as prior experience, education and motivation for success of the founder of the firm and business specific characteristics as industry, location, age and size of the company. In addition, Van Gelderen, Thurik and Bosma (2006) summarized that ‘start-up efforts differ in terms of the characteristics of the individuals who start the venture, the organization that they create, the environment surrounding the new venture, and the process by which the new venture is started. 2.1 Person Specific Characteristics In research report by Shane and Venkataraman (2000), it is suggested that success of the business could depend on the founders personality attributes or as Shane (2000) noted on the education of the entrepreneur and prior knowledge. Moreover, experienced founders of the young firm are more likely to take right strategic decisions than the ones with no prior experience. These determinants are considered as being essential for the better performance and decrease the probability of death of the firm. Arribas and Vila (2007) suggested that entrepreneurs human capital is a key determinant of the firms survival. Moreover, they came to a conclusion that the larger the number of entrepreneurs founding the company, the higher will be the chances of survival. One interesting feature to note about human capital stock is that initial larger human capital will add value to the firm and decrease the probability of death but the subsequent changes in human capital will have little impact on the firm survival (Geroski, Mata and Portugal, 2007). On the one hand, researchers argue that the human capital relevant to increasing the chances of survival are measured by the prior knowledge of the entrepreneur, level of education, experience in doing business in that industry and the entrepreneurs motivation for prosperity. On the other hand, others contend that the personal determinants are not that influential on the firms survival or death (Wicker and King 1989). Nevertheless, the education of the founder may not have a specific impact on the firms survival or death, but the knowledge gained by learning and working in the specific industry will influence the way how the entrepreneur responds to the challenges of doing business. 2.2 Business Specific Characteristics: industry sector, location, age and size The survival performance of entrepreneurs varies across industrial sectors, as some industries decline, while others expand. ‘There is a negative relationship between industry growth and firm survival, because growing industries are in earlier stages of the industry life cycle when requirements of adjusting to a changing environment, therefore leading to greater risk of failure (Strotmann, 2007). In contrast, there is a positive relationship between the firm survival and industry relevant experience, because it influences entrepreneurs ability to successfully launch the business and compete within that industry. Here, the point is that entrepreneurs with experience in the same industry as their current business will have a more network of industry suppliers and partners and will have a better understanding of the challenges of the industries in which they are going start a business. According to Fertala (2007) not much of attention was given to the regional differences as a determinant of firms survival or failure. Choosing the appropriate location also has an impact on the business processes. The reason why the location plays an important role in the firms survival or failure is that different regions offer different resources for the company and the cultural environment varies across countries. According to the study, entrepreneurs operate their business close to the place where they live (Mueller and Morgan, 1962). Empirical evidence suggests that locating the firm closer to the suppliers, customers and business partners increases the probability of survival. In addition, Strotmann (2007) contends that the risk of firm death is 30% more in urban areas compared to rural regions. The reason for this might be the high level of salaries and intense competition in urban areas. Fontana et al. (2009) stated that ‘coefficients for age at entry and size are all negative and significant, indicating that bigger firms, endowed with better availability of financial capital have a relatively higher probability of surviving. There are number of reasons for this to be the case. Firstly, large firms have an advantage over a small firm in a way that it has more access to finance, e.g. stock markets and debt financing. Moreover, large firms are more diversified than small firms, therefore they have less risk of failure. Falck (2007) summarised that the size of the firm is the best indicator of failure at the firm level and considered to be an overall measure of access to human capital and financial resources. In addition, Shane and Foo (1999) suggested that greater age will increase the probability of survival. This is not surprising, as the studies show that the most of the businesses fail in the early years of their operations. 3. FAST GROWTH FIRMS Barringer, Jones and Neubaum (2004) wrote that there is a limited knowledge on what determinants influence the firm growth. Authors gave a definition of fast growth firms as ‘firms with a 3-year compound annual sales growth rate of 80% or above (Barringer, Jones and Neubaum, 2004). Smallbone, Leigh and North (1995) compared 70 high growth firms with the other 236 surviving companies. Authors assessed these high growth firms on the basis of the following criteria: ‘(1) Rapid growth: i.e. more than doubling sales turnover in real terms over the 1979-90 periods. (2) Significant size: i.e. reaching a minimum sales turnover of  £0.5m. (3) Financial stability: i.e. consistent profitability in the late 1980s (Smallbone et al. 1995). The interesting feature that the authors noted is that fast growth can be attained by the firms with different size, age and industry characteristics. According to this study, the factors that differentiate high growth firms from other SMEs are that best performing firms are paying more attention to their products and markets by investing in RD, focusing on growth through their mission and strategies, opening to new markets and taking strategic decisions that will make the firm more competitive. Similarly, another study conducted i n 2008, compares the growth challenges of UK and US firms proves that, product and market development are key determinants of growth in both countries (Blackburn et al. 2008). Moreover, the study investigates that US firms were able to achieve the targeted growth by operating in US market; in contrast UK firms were involved in exporting to achieve growth. Subsequently, UK firms are subject to expansion barriers compared to US firms, however UK firms are more diversified and have higher survival probabilities in case of economic downturn. In addition, fast growth firms have a stronger commitment to growth and deeper level of customer knowledge than the firms with low performance indicators (Blackburn et al. 2008). Furthermore, authors observe that product innovation is a key determinant of firms growth. They came to that conclusion by interviewing UK and US business owners who reported that product innovation is a primary motivation for new venture start-up. Finally, Sapienza, Autio and Zahra (2003) argue that internationalization increases young firms probability of failure but at the same time increases prospects for growth. Entering the international market is often costly and firm may not survive after doing business in a foreign country. Moreover, it was observed that starting to operate internationally soon after entering the market is very risky. However, some firms decide to internationalize in their first years of their operations in order not to lose the available opportunity (Sapienza, Autio and Zahra, 2003). Finally, the study shows that some entrepreneurs consider failing in one or more start-ups as an experience before succeeding in their business. 4. CONCLUSION Overall, the results of the studies show that entrepreneurs experience, education level, firm location, age, and size of the firm are vital determinants of firm survival. The empirical evidence suggests that while both individual and business characteristics shape young firm survival within the first years after entry, in the long term, business factor such as firm size, which is measured by financial and human capital have little effect on the probability of survival, while other factors still have a considerable impact on the firms performance. By investigating the factors that lead the firms to grow rapidly, researchers can help all firms better understand the determinants associated with firm growth. The result obtained here is that fast growth firms attributes of success which discriminates them from other SMEs are successful RD investments, product innovation, and focusing on growth through their mission and strategies. Taken as a whole, achieving fast growth is a task of management, similar to the other entrepreneurial challenges that they face. Finally, there is a negative relationship between firm survival and internationalization. However, internationalization opens opportunities for growth for businesses and it is the choice of entrepreneurs to enter or not the international market at the early years of their new venture operations in accordance with the opportunities they have.

The Italian Renaissance :: European Europe History

The Italian Renaissance "What a piece of work is a man! How noble in reason, how infinite in faculties, in form and moving how express and admirable, in action how like an angel, in apprehension how like a god! The beauty of the world, the paragon of animals!" Hamlet, Act 2, Scene 2 Modern art critics regard renaissance art as graphic narratives of political and social events that occurred in the 14th through 16th century Europe. Scholars believe that the renaissance expressed a cultural revival of classical antiquity. And then there are others who doubt the concept of 'renaissance' entirely. Gundersheimer argues that Wallace K. Ferguson's concept of de-emphasizing the idea of renaissance to favor a view of "Europe in transition" was an ideal point that should be explored. This observation by Gundersheimer based on Ferguson's idea may become influential. The 'problem with renaissance' was that some interests and activities may also be found in earlier periods and are not bound to the renaissance years exclusively. And the rate of change was more similar to that of a highly influential widespread culture based transition. During the medieval era there were many contributions to the arts. The renaissance scholar Matteo Palmieri, writing in Florence in the 1430's considers the 100 years of the medieval era to be dark because of the lack of enlightenment in those years, in comparison of the "rebirth" and "renewal" of the renaissance. I think that the labeling of the medieval era as the dark ages helps to romanticize the achievements of the renaissance. Innovations during the medieval era were useful and unglamorous and easily forgotten. The renaissance was one of the few eras in our history that emanated the true intellect of man. Genius developed from the advances in art, science, philosophy and mathematics. Never has there since been such a time in which an individual is given ample opportunity and time to perfect and master his craft above all other societal pursuits and obligations. According to a source in the Encarta Encyclopedia, "The term renaissance was coined by the French historian Jules Michelet in 1855, to mean 'rebirth.' It refers to the 'discovery of the world of man' in the 16th century." (Encarta Renaissance 1) The renaissance period in art history corresponds to the beginning of the great western age of discovery and exploration, when a general desire and curiosity developed to examine all aspects of nature and the world.

Monologue of a young boy Essay

*Kicks his football up against the house wall* I never used to be able to do this. I can do it now though obviously. Me and my dad spent a whole afternoon practising my kicking. â€Å"The side of your foot it goes long, the tip of your foot it goes high.† he would say. I never got what he meant at first. I could kick it far but not high. The first time I went to kick it high like dad told me to, I fell over onto my back. It really hurt. My eyes were watering but my dad always told me that big boys don’t cry. He grabbed the ball off me and booted it higher than my bedroom window! I can’t remember the last time me and dad spent the day together. He’s always working, or down the pub, or going out with his fancy bird Jenny. *George doesn’t kick the ball in time and it rolls behind him. He puts his finger up into the air* Emirates Stadium. Dad got us 2 tickets for the Arsenal v Man U match. Well 3 actually. Jenny came. She wouldn’t stop moaning! â€Å"David, I’m cold. David, how long until we can go home? David. David. David.† The moaning ruined it. She ruined it. The only time she shut up was when dad had his tongue half way down her throat. *Puts his fingers down his throat* BLERGH! He never used to do that with mom. They would always shout a lot. When I would go to bed I used to have to put my pillow over my head so I couldn’t hear them. It didn’t help. It sounded like I was under water and they were squawking like seagulls. *Shakes his head to get rid of the memories* She can do much better than dad. She’s really pretty and makes the best cheese on toast EVER! She puts that Worcestershire sauce on it. Mr Spink didn’t like it when he tried it though. Mr Spink is my teacher at school. He got a crush on my mom. When me and mom went to parents evening he kept giving her googly eyes. Mom didn’t like him that much. She was doing her â€Å"you’re a very nice man†¦.but no† face. While he was chatting mom up, I snuck off and changed the bell clock so it rang for the next parents to have their meeting. Mom noticed me by the bell as she left. She winked, took my hand and we walked to the car, not looking back at Mr Spink. â€Å"Cheeky Monkey.† She said to me as she got into the car with a smile on her face. I asked her if she fancied Mr Spink. She said I was as bonkers as Granny Cat Face. *Rolls his eyes* She’s dad’s mom. She’s really called Ermintrude but me and mom call her Cat Face because she’s spent so much time with her evil cats that her face always looks like a cat’s when it’s just drank some milk that’s slightly off. *Makes a face like Granny Cat Face’s. He scrunches up his mouth * We went round for Sunday dinner a while ago and she started trying to clasp one of those annoying teeny tiny flies that fly into your face in her big meaty hands. She looked just like a cat clawing a ball of yarn. Me and mom couldn’t stop laughing. We haven’t been invited back since. Mom’s making dinner now. Chicken nuggets, chips and beans. Mom doesn’t make fancy food. Dad used to moan about always having the same food. I don’t. I like chicken nuggets. Mom doesn’t seem to be as angry now as she was when dad was around. Her hair used to go all curly and her cheeks would go red but not now. Now she looks pretty and wears make up and has hair like David Beckham’s wife. *George’s phone vibrates. He checks his phone* Billy’s going to come and knock for me at 1 o’clock so we can go and play football round his. His big sister’s so cool. *Looks up at the camera then carries on kicking the ball* She’s called Kate and she’s 17. She spiked mine and Billy’s hair for us. Then she had to take some pictures of us for her beauty course. We started modelling in the garden for her. My foot got caught under one of the concrete slabs and I fell over. Billy’s sister took me inside, cleaned my cut and put a plaster on it. She said I was really brave and even the best models fall over at times. I don’t like Billy’s mom though. She makes me eat me eat vegetables when I go round and always asks how mom’s coping without dad and if they’re going to get back together. I hope they don’t. They weren’t very happy. It’s a bit sad not seeing both of them on my birthday but I get 2 lots of presents. And besides, mom said her and dad both love me but it’s just hard to stay together when you argue so much. *The door bell rings* Billy’s at the door so I better go. Don’t want to keep Kate waiting do I?

Essay on Christina Rossetti’s Goblin Market - 1087 Words

Christina Rossetti’s poem, Goblin Market, was written in the Victorian era during a time of vast social change across Europe. Though the Victorian period was a time of female suppression and order, Rossetti exposed social stigmas and ideologies that are displayed through the journey of two sisters, Laura and Lizzie. Despite initial impressions of a childhood fairytale, the suggestive and multi-interpretive use of language signifies an underlying message of erotic sexual commentary and feminist views. In addition, Rossetti conveys moral lessons by illustrating consequences of the goblin’s seduction. Through the sister’s experience with the goblins, the power of sisterhood becomes undeniable. Christina Rossetti’s Goblin Market serves as a†¦show more content†¦Ironically, Rossetti’s portrayal of seduction is in stark contrast to accepted notions of the Victorian period in that the male characters signify dangerous temptation, not the troubled females. The goblin men confirm this contradiction by representing the venomous effects that experienced seductive men have on innocent naive women. Rossetti’s ironic gender split exemplifies her progressive attitude of feminist thought while also serving as a depiction on the principles of Victorian society. In addition, the feminist view of sexuality is evident throughout Rossetti’s poem. Laura and Lizzie’s magical experience portrays the pursuit for sensual awareness while struggling between physical identity and spiritual salvation. Furthermore, â€Å"She clipped a precious golden lock, she dropped a tear more rare than pearl, then sucked their fruit globes fair or red, sweeter than honey from the rock† (ll. 126-29) and â€Å"sucked until her lips were sore† (l. 136). With blatant sexual undertones, this pivotal moment signifies the character’s transition from maiden to woman or innocence to experience. Additionally, this exchange could be a metaphor for Laura’s relinquishment of her sacred virginity. As Laura falls sicker and slowly begins to deteriorate, Rossetti illustrates the consequences of succumbing to the temptation of men’s deceit and the importance of remaining pure. With use of vivid imagery, Rossetti further emphasizes the animalistic and uncannyShow MoreRelatedChristina Rossetti’s Goblin Market Essay887 Words   |  4 Pages There are several meanings and interpretations of Christina Rossetti’s, â€Å"Goblin Market†. â€Å"Goblin Market† is the story of two sisters, which one of them, Laura, is tempted to visit the new goblin market in town. Laura buys the fruit from the goblin men in exchange for a lock of her hair, despite the several warnings from her sister Lizzie not to consume the fruit. Laura gets sick and Lizzie saves her by going to the market. 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