Growth of new start-up firms: evidence from the Japanese manufacturing industry

This paper investigates firm growth as the post-entry performance of new start-up firms. Using data on Japanese manufacturing firms founded during 1992–1996, the determinants of growth among new start-up firms are identified. The effect not only of firm-specific characteristics, but also of entrepreneur-specific, industry-specific and local characteristics on firm growth are examined. It is found that younger and small-sized firms are more likely to grow among the start-ups. It is also found that entrepreneur's age and educational background affect the growth of start-ups. It is not shown, however, that industry specialization induces the growth of start-ups.