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Entrepreneurship Dynamics in Australia: Lessons from Micro‐data

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Using a large firm‐level dataset covering the years 2002–2015, I explore the dynamics of entrepreneurship in Australia and their evolution over time. Put briefly, the Australian entrepreneurial landscape has become less dynamic and more hazardous over the observed period. With time passing, relatively fewer entrepreneurs are entering the market, and those that enter are more likely to exit than their counterparts that entered in earlier years. In particular, there is a seemingly permanent increase in exit probability followed by a spike after the global financial crisis. Despite fewer firms entering, the share of young firms from job creation has been steadily high. I finish by offering a few thoughts to help understand these changes.
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Document Type: Research Article

Publication date: March 1, 2019

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