The statistical observation that small firms have created the majority of new jobs during the 1980s has had a tremendous influence on public policy. Governmentshave looked to the small firm sector for employment growth, and have promoted policies to augment this expansion. However, recent...

This paper examines the factors underlying firm failure, and compares the failure mechanisms for young firms against those of older organizations. This paper suggests that there are systematic differences between the determinants of firm failure for firms that fail early in life and those that...