The strategic management literature on entrepreneurship supports the notion of a sustainable number of firms implying a balance between available profit opportunities and the number of firms trying to exploit them. Likewise, the economics literature claims that a sustainable number of firms not only exists, but acts as a point of gravity in equilibrium based models of industry. Both schools speculate about the behaviour of business start-ups and deaths when the industry is in disequilibrium. Remarkably, there is little empirical analysis of these processes. This paper aims to rectify this shortcoming.
Burke, Andrew and Shabbir, Amama
"THE BEHAVIOUR OF FIRM ENTRY AND EXIT IN DISEQUILIBRIUM THE ENTREPRENEURIAL ECONOMY IN THE USA, 1998-2003 (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 28
, Article 2.
Available at: http://digitalknowledge.babson.edu/fer/vol28/iss16/2