UNU-MERIT Working Papers

Working Paper #2012-015

New firm creation and failure: A matching approach

Thomas Gries, Stefan Jungblut & Wim Naudé #2012-015 PDF

We propose that the rate of creation and failure of new firm start-ups
can be modelled as a search and matching process, as in labor market
matching models. Deriving a novel Entrepreneurship-Beveridge curve, we
show that a successful start-up depends on the efficiency with which
entrepreneurial ability is matched with business opportunity, and
outline a number of possible applications of this matching approach to
formalize the economics of entrepreneurship.

Keywords
  • Entrepreneurship
  • start-ups
  • labor market matching
JEL codes
  • L26
  • M13
  • O10
  • O14
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APA 7th ed.

Gries, T., Jungblut, S., & Naudé, W. (2012). New firm creation and failure: A matching approach (UNU-MERIT Working Paper No. 2012-015). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=4669

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