Personal Experience: A Most Vicious and Limited Circle!? On the Role of Entrepreneurial Experience for Firm Survival

Table 4: Cox regression on firm closure

Dependent variable: hazard rate

Model A (Pooled exit types)

_a           95%-confidence

Coefficient ^a

interval

Model B (Pooled failure types)

_a           95%-confidence

Coefficient ^a

interval

Model C (Bankruptcy)

_a           95%-confidence

Coefficient ^a

interval

Exit experience (reference: no experience)

Sale of shareholdings

-0.026

(0.027)

-0.078

0.026

-0.011

(0.031)

-0.071

0.049

0.048

(0.039)

-0.028

0.125

Voluntary closure of sound firm

0.013

(0.041)

-0.068

0.093

-0.075

(0.049)

-0.172

0.021

-0.195***

(0.066)

-0.324

-0.067

Voluntary closure of distressed firm

0.315***

(0.047)

0.224

0.406

0.319***

(0.051)

0.219

0.419

0.236***

(0.071)

0.097

0.375

Bankruptcy

0.370***

(0.030)

0.311

0.428

0.452***

(0.032)

0.389

0.516

0.534***

(0.042)

0.453

0.616

Entrepreneurial within-industry experience

0.084*

(0.046)

-0.006

0.173

0.049

(0.052)

-0.052

0.150

0.085

(0.066)

-0.043

0.214

Multiple entrepreneurial experiences

0.219***

(0.039)

0.142

0.296

0.215***

(0.044)

0.129

0.301

0.174***

(0.056)

0.064

0.285

Initial economic situation ^b

Payment behavior (indicator: good)

-0.282***

(0.009)

-0.300

-0.264

-0.806***

(0.013)

-0.832

-0.780

-0.319***

(0.016)

-0.349

-0.288

Financial standing (indicator: care is advisable)

0.440***

(0.011)

0.418

0.462

0.694***

(0.012)

0.671

0.717

1.014***

(0.016)

0.982

1.046

Higher education (indicator: graduate)

-0.220***

(0.015)

-0.249

-0.192

-0.309***

(0.018)

-0.344

-0.273

-0.368***

(0.023)

-0.414

-0.323

Education unknown

0.165***

(0.008)

0.150

0.180

0.197***

(0.009)

0.180

0.215

0.218***

(0.012)

0.193

0.242

Age of the entrepreneur(s) (reference: under 30 years)

30 to 39 years

-0.142***

(0.009)

-0.161

-0.124

-0.145***

(0.011)

-0.167

-0.123

-0.118***

(0.016)

-0.149

-0.087

40 to 49 years

-0.111***

(0.010)

-0.130

-0.091

-0.112***

(0.012)

-0.135

-0.088

-0.104***

(0.017)

-0.137

-0.072

50 to 59 years

-0.029**

(0.013)

-0.054

-0.005

-0.065***

(0.015)

-0.094

-0.036

-0.115***

(0.020)

-0.155

-0.075

60 and older

0.084***

(0.020)

0.045

0.123

-0.030

(0.025)

-0.079

0.018

-0.207***

(0.033)

-0.272

-0.142

Age unknown

-0.094***

(0.012)

-0.117

-0.070

-0.178***

(0.014)

-0.206

-0.149

-0.612***

(0.023)

-0.658

-0.566

Governance (indicator: team)

-0.208***

(0.011)

-0.230

-0.185

-0.348***

(0.014)

-0.375

-0.321

-0.474***

(0.018)

-0.510

-0.438

Number of employees at start-up

0.031***

(0.002)

0.027

0.034

0.053***

(0.002)

0.048

0.057

0.102***

(0.003)

0.097

0.108

Legal form (indicator: limited liability)

0.003

(0.009)

-0.014

0.021

0.172***

(0.010)

0.152

0.192

0.707***

(0.013)

0.681

0.733

Location (indicator: East-Germany)

0.061***

(0.008)

0.046

0.077

0.058***

(0.009)

0.040

0.076

0.211***

(0.012)

0.187

0.236

χ²-Test on joint significance of the

Industry dummies ^c

Founding year dummies ^c

Wald-test χ²

Number of subjects / number of exits

2,296***

3,628***

12,052***

345,179 / 91,750

1,803***

2,106***

16,827***

345,179 / 66,684

1,284***

80***

14,182***

345,179 / 35,566