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Determinants of firm entries: empirical evidence for Slovenia

Author(s): Dijana Močnik

Journal: Economic and Business Review
ISSN 1580-0466

Volume: 12;
Issue: 2;
Start page: 129;
Date: 2010;
Original page

We empirically investigate the determinants of new firm formations on Slovenian data set for the 6-year period across statistical regions. Analyzed are the relationships of the determinants classified into five groups: demand, unemployment, industrial restructuring, local financial capital, and knowledge concentration. We find a positive and significant impact of GDP p.c., unemployment rate, productivity growth and a negative relationship for employment density. Results show that some regions have significantly worse conditions for start-up firms than others. Practical implications of this study would allow policy makers to better understand the dynamics in new firm formations.

Tango Jona
Tangokurs Rapperswil-Jona

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