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Empirical evidence of survival determinants
- Sample: 1589 family owned SME and 485 non family owned SMEs.
- There is a difference between family owned and non-family owned SMEs.
- Variables used: size, age, cash flow, debt, interest paid, expenditure on research and dev, risk and labour productivity.
- Survival of family owned SME is increased by cash flow and labour productivity and is restricted by debt, interest paid and risk.
- Survival of non-family owned SME depends on size, age, debt, R&D expenditure and cash flow. The later with less important as for family owned.
- According to Gujarati & Porter (2010) when the correlation coefficients between independent variables are above 50%, the problem of colinearity becomes significant.
- The article measures elasticity of each independent variables.
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