ESC

Clarivate

JCR Category: Business in ESCI edition

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2025) 1.5 Q3
Journal Citation IndicatorTM (2025) 0.25 Q4
Received: 2018-12-14  |  Accepted: 2019-04-10  |  Published: 2019-06-30

Title

Projection of enterprise survival rate in dynamics of regional economic sustainability: case study of Russia and the EU


Abstract

Discussing the problem of economic sustainability, we are in general deal with life cycles and economic activity. Factors causing dynamics in entrepreneurial ventures, their duration and process rate depend on environmental conditions, including institutional, market, infrastructure, and resource aspects. A cumulative impact of all of these factors appears at a specific level of enterprise survival, which becomes a universal characteristic of sustainable economy. Going from official statistics on business demography and complementary empirical data, in this research, we focus on enterprise survival trends in Russia and the EU. The results obtained for Russia assume that in a number of industries, there is an intensive turnover of companies. Over the past two years, a medium-term trend towards a reducing number of enterprise births and increasing number of enterprise deaths in Russia has had a negative ratio. The average enterprise survival rate within a horizon of one year (2013/2014) was 74% in Russia and 77% in the EU. For a five-year period of 2009/2014, the average enterprise survival rate was less than 55% and 45% respectively. In general, in countries with a low average enterprise survival rate, in the first year, there is a persisting low rating in almost all of the industries, assuming that trends in enterprise sustainability dynamics depend on an overall economic situation instead of specifics in a particular sector. An important conclusion from the research is that the long-term survival rate of Russian companies is clearly higher, while the short-term one is lower than that of companies in the EU.


Keywords

economic sustainability, economic activity, entrepreneurship, enterprise survival, business demography, adaptation strategies


JEL classifications

D81 , E30 , L26


URI

http://jssidoi.org/jesi/article/307


DOI


Pages

1602-1617


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Kuzmin, Evgeny A.
Institute of Economics, the Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation http://www.uiec.ru
Articles by this author in: CrossRef |  Google Scholar

Vinogradova, Marina V.
Russian State Social University, Moscow, Russian Federation http://rgsu.net
Articles by this author in: CrossRef |  Google Scholar

Guseva, Valentina E.
Tyumen Industrial University, Tyumen, Russian Federation https://www.tyuiu.ru
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

4


Issue date

June 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 5797  |  PDF downloads: 2641

References


Adizes, I. (1979). Organizational passages – diagnosing and treating lifecycle problems of organizations. Organizational Dynamics, 8(1), 3–25. 90001-9 https://doi.org/10.1016/0090-2616(79)

Search via ReFindit


Aldrich, H., & Auster, E. (1986). Even dwarfs started small: liabilities of size and age and their strategic implications. Research in Organizational Behavior, 8, 165–198.

Search via ReFindit


Armington, C., & Acs Z.J. (2002). The determinants of regional variations in new firm formation. Region Stud 35, 33–45. https://doi.org/10.1080/00343400120099843

Search via ReFindit


Beugelsdijk, S., Klasing, M.J., & Milionis, P. (2018). Regional economic development in Europe: the role of total factor productivity. Regional Studies, 52(4), 461–476. https://doi.org/10.1080/00343404.2017.1334118

Search via ReFindit


Braunerhjelm, P. (2010). Entrepreneurship, innovation and economic growth: past experiences, current knowledge and policy implications (Working Paper Series in Economics and Institutions of Innovation 224, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies). http://www.entreprenorskapsforum.se

Search via ReFindit


Bruderl, J., & Schussler, R. (1990). Organizational mortality: the liabilities of newness and adolescence. Administrative Science Quarterly, 35, 530–547. https://doi.org/10.2307/2393316

Search via ReFindit


Capello, R. (2010). Space, growth and development. In R. Capello, & P. Nijkamp (Eds.), Handbook of Regional Growth and Development Theories. Edward Elgar Publishing.

Search via ReFindit


Capello, R. (2011). Location, regional growth and local development theories. AESTIMUM, 58, 1–25.

Search via ReFindit


Chindooroy, R., Muller, P. & Notaro, G. (2007). Company survival following rescue and restructuring State aid. European Journal of Law and Economics, October, 24(2), 165–186. https://doi.org/10.1007/s10657-007-9031-9

Search via ReFindit


Concerning structural business statistics. (2008) (Regulation No. 295/2008 of the European Parliament and the Council). https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:097:0013:0059:EN:PDF

Search via ReFindit


Crescenzi, R., Luca, D., & Milio, S. (2016). The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance. Cambridge Journal of Regions, Economy and Society, 9(1), 13–32. https://doi.org/10.1093/cjres/rsv031

Search via ReFindit


Ernst & Young, Russian Venture Company. (2014). Problems and solutions: business incubators and technology parks in Russia. Moscow. https://www.rvc.ru/upload/iblock/f7d/201403_Business_incubators.pdf

Search via ReFindit


Eurostat. Business demography. https://ec.europa.eu/eurostat/web/structural-business-statistics/entrepreneurship/business-demography

Search via ReFindit


Federico, J.S., & Capelleras, J.L. (2015). The heterogeneous dynamics between growth and profits: the case of young firms. Small Business Economics, February, 44(2), 231–253. https://doi.org/10.1007/s11187-014-9598-9

Search via ReFindit


Fertala, N. (2008). The shadow of death: do regional differences matter for firm survival across native and immigrant entrepreneurs? Empirica, 35(1), 59–80. https://doi.org/10.1007/s10663-007-9051-2

Search via ReFindit


Garnsey, E., Stam, E., & Heffernan, P. (2006). New firm growth: Exploring processes and paths. Small Business Economics, 13(1), 1–20.

Search via ReFindit


Gerguri, S., & Ramadani, V. (2010). The Impact of innovation into the economic growth (MPRA Paper No. 22270). https://mpra.ub.uni-muenchen.de/22270

Search via ReFindit


Gerlach, K., & Wagner, J. (1994). Regional differences in small firm entry in manufacturing industries: Lower Saxony, 1979–1991. Entrepreneurship & Regional Development, 6(1), 63–80. https://doi.org/10.1080/08985629400000004

Search via ReFindit


Hannan, M., & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review, 49, 149–164. https://doi.org/10.2307/2095567

Search via ReFindit


Harris, R. & Robertson, C. (2001). The impact of regional selective assistance on UK manufacturing and total factor productivity. 1990-98 (Paper presented at CEPR/ESRC Workshop. London).

Search via ReFindit


Hungerford, T.L. (2013). Corporate tax rates and economic growth since 1947 (Issue brief No. 364). Economic Policy Institute. http://www.epi.org

Search via ReFindit


International Fund of Support to Economic Reforms in Russia. (1994). Proceedings of the 3rd International Congress “Small and Medium-sized Business in Russia”, Moscow, Russia (November, 23-25).

Search via ReFindit


Ivvonen, L.A., & Shirokova, G.V. (2016). Strategic entrepreneurship: essence and main research directions. Vestnik of Saint Petersburg University. Ser. 8. Management, 4, 21–53.

Search via ReFindit


Jaimovich, N. & Rebelo, S. (2017). Non-linear Effects of Taxation on Growth. Journal of Political Economy, 125(1), 265–291. https://doi.org/10.1086/689607

Search via ReFindit


Jones, C.I. (1999). Growth: With or Without Scale Effects? American Economic Review, 89, 139–44. https://doi.org/10.1257/aer.89.2.139

Search via ReFindit


Knight, F.H. (1965). Risk, Uncertainty and Profit. New York.

Search via ReFindit


Krugman, P. (1991). Geography and Trade. Massachusetts: MIT Press.

Search via ReFindit


Krugman, P. (1991). Increasing returns and economic geography. Journal of Political Economy, 99, 483–499. https://doi.org/10.1086/261763

Search via ReFindit


Kuzmin, E.A. (2017). Empirical estimator of corporate survival rate in Russia: regional survey for 1991-2014. North Charleston, USA: CreateSpace.

Search via ReFindit


Kuzmin, E.A. (2018). Data on empirically estimated enterprise survival rate in Russia. Data in brief, 16, 850–864. https://doi.org/10.1016/j.dib.2017.12.011

Search via ReFindit


Kuzmin, E.A. (2018). Empirical estimator of corporate survival rate in Russia: branch-wise survey for 1991-2014. North Charleston, USA: CreateSpace.

Search via ReFindit


Kuzmin, E.A., Guseva, V.E. (2016). Survival rate and lifecycle in terms of uncertainty: review of companies from Russia and Eastern Europe. Journal of Advanced Research in Law and Economics, 7(21), 1754–1766.

Search via ReFindit


Kuzminov, A.N., Abdullayev, R.R., & Shirokov, I.O. (2016). Research tools of industrial economy in the context of business structures survival. Accounting and Statistics, 1, 108–114.

Search via ReFindit


Kuznetsov, D.E. (2017). Survival of the Russian companies in export. Russian Journal of Entrepreneurship, 18(1), 57–66.

Search via ReFindit


Lucas, R.E., Jr. (1978). On the Size Distribution of Business Firms. The Bell Journal of Economics, 9, 508–23. https://doi.org/10.2307/3003596

Search via ReFindit


Lucas, R.E., Jr. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3–42. 90168-7 https://doi.org/10.1016/0304-3932(88)

Search via ReFindit


Mata J., & Portugal, P. (2002). The survival of new domestic and foreign‐owned firms. Strategic Management Journal 23, 323–343. https://doi.org/10.1002/smj.217

Search via ReFindit


Melitz, M. (2003). The Impact of Trade on Intra-Industry reallocation and Aggregate Industry Productivity. Econometrica, 71(6), 1695–1725. https://doi.org/10.1111/1468-0262.00467

Search via ReFindit


Müller, Al., & Pfleger, R. (2014). Business transformation towards sustainability. Business Research, 7(2), 313–350. https://doi.org/10.1007/s40685-014-0011-y

Search via ReFindit


Myrdal, G. (1957). Economic Theory and Underdeveloped Regions. London: Duckworth.

Search via ReFindit


OECD. The OECD-Eurostat entrepreneurship indicators programmer: background information. http://www.oecd.org/sdd/business-stats/theentrepreneurshipindicatorsprogrammeeipbackgroundinformation.htm

Search via ReFindit


Plummer, L.A., & Pe’er, A. (2010). The geography of entrepreneurship. In: Z. Acs & D. Audretsch (Eds.), Handbook of entrepreneurship research. International handbook series on entrepreneurship, 5 (pp. 519–556). New York, NY: Springer. https://doi.org/10.1007/978-1-4419-1191-9_19

Search via ReFindit


Porter, M. E. (2000). Location, clusters, and company strategy. In G. Clark, M. Feldman, & M. Gertler (Eds.), Oxford Handbook of Economic Geography. Oxford: Oxford University Press.

Search via ReFindit


Prakash, R., & Garg, P. (2019). Comparative assessment of HDI with Composite Development Index (CDI). Insights into Regional Development, 1(1), 58-76. https://doi.org/10.9770/ird.2019.1.1(5)

Search via ReFindit


Preisendörfer, P., & Voss, T. (1990). Organizational Mortality of Small Firms: The Effects of Entrepreneurial Age and Human Capital, Organization Studies, 11(1), 107–129. https://doi.org/10.1177/017084069001100109

Search via ReFindit


Reiner, C. & Gassler, H. (2017). Where are the entrepreneurs when we need them? (LBS Working Paper 3). Vienna.

Search via ReFindit


Richardson, H.W. (1973). Regional Growth Theory. London. https://doi.org/10.1007/978-1-349-01748-5

Search via ReFindit


Romer, P. (1992). Increasing Returns and New Developments in the Theory of Growth (NBER Working paper).

Search via ReFindit


Rossetti, F. (2017). The Business demography of the ICT sector in Europe (No. JRC106589). Joint Research Centre (Seville site).

Search via ReFindit


Rosstat. Institutional Changes in Economy: Business Demography. http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/enterprise/reform

Search via ReFindit


Rosstat. Statistical Methodology to Generate Indicators of Business Demography (in Terms of Legal Entities) (approved by Order No. 541 on August 29, 2014). http://www.gks.ru/free_doc/new_site/business/inst-preob/metodika_bizn-dem.doc

Search via ReFindit


RSM International Association. (2014). Recovery of global economy: Conclusions from an international comparative study of “birth” and “death” rates of enterprises. http://www.rsmrus.ru

Search via ReFindit


Sasongko, G., Huruta, A.D., & Wardani, A. (2019). Does the Wagner’s Law exist in a strategic national area? An evidence from Kedungsepur – Indonesia. Insights into Regional Development, 1(2), 99-117. https://doi.org/10.9770/ird.2019.1.2(2)

Search via ReFindit


Schouten, M.J. (2019). Undoing gender inequalities: insights from the Portuguese perspective. Insights into Regional Development, (2), 85-98. https://doi.org/10.9770/ird.2019.1.2(1)

Search via ReFindit


Schumpeter, J.A. (1961). The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle. New York: OUP.

Search via ReFindit


Shamrai, A.A. (Ed.). (2010). Life Cycle of a Small Enterprise. Moscow: Liberal Mission Foundation.

Search via ReFindit


Shirokova, G.V., Merkurieva, I.S., & Serova, O.Yu. (2006). Features of the formation of the life cycles of Russian companies (empirical analysis). Russian Management Journal, 4(3), 3–26.

Search via ReFindit


Simonova, L.M., & Ovsyankina, M.V. (2016). Demography of Organization as a Navigator of Management’s Decision Making. Tyumen State University Herald. Social, Economic, and Law Research, 2(2), 209–218. https://doi.org/10.21684/2411-7897-2016-2-2-209-218

Search via ReFindit


Solow, R.A. (1956). Conttribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70, 65–94. https://doi.org/10.2307/1884513

Search via ReFindit


Sombart, W. (1913). Studien zur Entwicklungsgeschichte des modernen Kapitalismus. München/Leipzig: Duncker & Humblot.

Search via ReFindit


Stinchcombe, A.L. (1965). Social structure and organizations. In J.P. March (Ed.), Handbook of Organtzatlons (pp. 142-193). Chicago: Rand McNally.

Search via ReFindit


Swan, T. (1956). Economic Crowth and Capital Accumulation. Economic Record, 32(2), 334–361. https://doi.org/10.1111/j.1475-4932.1956.tb00434.x

Search via ReFindit


The Community Lisbon Program. (2005). Communication from the Commission to the Council and the European Parliament. Common actions for growth and employment. Brussels.

Search via ReFindit


Tobias, H., & Scheermesser, M. (2006). Approaches to corporate sustainability among German companies. Corporate Social and Responsible Environmental Management, 13(3), 150–165. https://doi.org/10.1002/csr.100

Search via ReFindit


Tödtling, F., & Wanzenböck, H. (2003). Regional differences in structural characteristics of start-ups. Entrepreneurship & Regional Development, 15(4), 351–370. https://doi.org/10.1080/0898562032000058923

Search via ReFindit


Tvaronavičienė, M., & Gatautis, R. (2017). Peculiarities of income distribution in selected countries. Economics and Sociology, 10(4), 113-123. https://doi.org/10.14254/2071-789X.2017/10-4/9

Search via ReFindit


Van Praag, C.M. (2003). Business Survival and Success of Young Small Business Owners. Small Business Economics, 21(1), 1–17. https://doi.org/10.1023/A:1024453200297

Search via ReFindit


Volkonitskaya, E.M. (2006). The governmental registration of business organizations: a comparative analysis of legislation of European countries and Russia. Omsk Scientific Bulletin, 10(49), 69–74.

Search via ReFindit


Wennekers S., &Thurik, R. (1999). Linking entrepreneurship and economic growth. Small Business Economics, 13(1), 27–56. https://doi.org/10.1023/A:1008063200484

Search via ReFindit


Zeibote, Z., Volkova, T., & Todorov, K. (2019). The impact of globalization on regional development and competitiveness: cases of selected regions. Insights into Regional Development, 1(1), 33-47. https://doi.org/10.9770/ird.2019.1.1(3)

Search via ReFindit