New firm creation and failure: A matching approach
Thomas Gries, Stefan Jungblut & Wim Naudé
#2012-015
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.
JEL classifications: L26, M13,O10, O14
Keywords: Entrepreneurship, start-ups, labor market matching