ANALYSIS OF SURVIVAL RATES AMONG FRANCHISE AND INDEPENDENT SMALL BUSINESS STARTUPS

Authors
BATES T
Citation
T. Bates, ANALYSIS OF SURVIVAL RATES AMONG FRANCHISE AND INDEPENDENT SMALL BUSINESS STARTUPS, Journal of small business management, 33(2), 1995, pp. 26-36
Citations number
12
Categorie Soggetti
Management
Journal title
Journal of small business management → ACNP
ISSN journal
00472778
Volume
33
Issue
2
Year of publication
1995
Pages
26 - 36
Database
ISI
SICI code
0047-2778(1995)33:2<26:AOSRAF>2.0.ZU;2-3
Abstract
Analysis of small firm formations over the 1984-1987 period reveals th at franchise startups exhibit both higher rates of firm discontinuance and lower mean profitability than cohort independent business startup s. The young franchising firms are heavily concentrated in retailing, and it is the retail franchises that most often fit the high risk, low return profile. Popular franchising niches in retailing appear to be saturated, leaving diminished prospects for newcomers.