Initial situation/policy problem
Mittelstand enterprises are often deeply connected to their region, as they may be tied, e. g., to a specific location, local suppliers, and/or to the local sales market. Their survival is, therefore, strongly determined by their regional environment. This is true both for newly founded businesses, which are especially vulnerable in their early years, and for more established companies. Therefore, changes in regional framework conditions over time can either enhance or impair the survival of enterprises.
Research goals/approach
The aim of this project is to examine the characteristics of regions where businesses exhibit particularly high survival rates and the features of regions with notably high business mortality rates. For this purpose, the average survival probability of start-ups and young SMEs in each region will be calculated for the period from 2002 to 2022. The project will also analyse the survival probability of young businesses in regions with initially similar conditions, observing how these probabilities change over time and identifying the location factors that drive differing developmental trends. Due to data availability, spatial planning regions are chosen as the unit of analysis. The project will make use of IfM Bonn’s Regional Database, which contains information on key location factors. This database will be enriched with data on the survival probabilities of young SMEs, derived from the VAT panel.