The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic
The paper deals with the market concentration as a detractor of life expectancy of new-born economic entities in the Czech economy. Although the start-up firms are small companies, their role in the economy exceeds their size, they are seen as providing the energy for economic growth. The aim of the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Mendel University Press
2016-01-01
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| Series: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Subjects: | |
| Online Access: | https://acta.mendelu.cz/64/3/0929/ |
| _version_ | 1819056594867978240 |
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| author | Ivana Blažková Gabriela Chmelíková |
| author_facet | Ivana Blažková Gabriela Chmelíková |
| author_sort | Ivana Blažková |
| collection | DOAJ |
| description | The paper deals with the market concentration as a detractor of life expectancy of new-born economic entities in the Czech economy. Although the start-up firms are small companies, their role in the economy exceeds their size, they are seen as providing the energy for economic growth. The aim of the paper is to evaluate the influence of different levels of market concentration on the business lifespan and consequently the job destruction in the economy. The analysis has shown that the greatest decline of start-up firms comes during the first and second year and that only around 30% of them get to their sixth year. From the viewpoint of the job creation it was found out that almost 30% of all new positions in the Czech economy are established in wholesale and retail trade sector, followed by manufacturing and professional, scientific and technical activities, both with 14% of new jobs. Using the regression analyses and statistical hypotheses testing the relationship between market concentration and firms’ lifespan was investigated with result of semi-strong dependency of the business success on the market structure. The positive correlation between the probability of decline across individual economic sectors and the market concentration in these sectors was confirmed on the level of statistical significance α = 0.01. |
| first_indexed | 2024-12-21T13:25:54Z |
| format | Article |
| id | doaj.art-8b84e7e66cc3431280ed81ef80906971 |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-21T13:25:54Z |
| publishDate | 2016-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-8b84e7e66cc3431280ed81ef809069712022-12-21T19:02:27ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102016-01-0164392993810.11118/actaun201664030929The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech RepublicIvana Blažková0Gabriela Chmelíková1Department of Regional and Business Economics, Faculty of Regional Development and International Studies, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicDepartment of Regional and Business Economics, Faculty of Regional Development and International Studies, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicThe paper deals with the market concentration as a detractor of life expectancy of new-born economic entities in the Czech economy. Although the start-up firms are small companies, their role in the economy exceeds their size, they are seen as providing the energy for economic growth. The aim of the paper is to evaluate the influence of different levels of market concentration on the business lifespan and consequently the job destruction in the economy. The analysis has shown that the greatest decline of start-up firms comes during the first and second year and that only around 30% of them get to their sixth year. From the viewpoint of the job creation it was found out that almost 30% of all new positions in the Czech economy are established in wholesale and retail trade sector, followed by manufacturing and professional, scientific and technical activities, both with 14% of new jobs. Using the regression analyses and statistical hypotheses testing the relationship between market concentration and firms’ lifespan was investigated with result of semi-strong dependency of the business success on the market structure. The positive correlation between the probability of decline across individual economic sectors and the market concentration in these sectors was confirmed on the level of statistical significance α = 0.01.https://acta.mendelu.cz/64/3/0929/start-up firmsmarket concentrationregional development |
| spellingShingle | Ivana Blažková Gabriela Chmelíková The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis start-up firms market concentration regional development |
| title | The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic |
| title_full | The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic |
| title_fullStr | The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic |
| title_full_unstemmed | The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic |
| title_short | The Influence of Market Concentration on the Development of Newly Born Businesses in the Czech Republic |
| title_sort | influence of market concentration on the development of newly born businesses in the czech republic |
| topic | start-up firms market concentration regional development |
| url | https://acta.mendelu.cz/64/3/0929/ |
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