Declining business dynamism in Belgium

Gert Bijnens, Jozef Gerard L Konings

Research output: Contribution to journalArticle

Abstract

Using 30 years of data from all for-profit firms incorporated in Belgium, we show that business dynamism and entrepreneurship have been declining over recent decades. This decline set in around the year 2000 following a decade of declining start-up rates. We also observe a decreasing share of young firms that become high-growth firms and more importantly a declining propensity for small (not necessarily young) firms to experience fast growth. Interestingly, a similar decline in business dynamism occurred in the USA, where firms face a far less rigid institutional environment than in Belgium. These remarkable similarities suggest that global trends rather than country-specific changes are at the basis of this evolution. We show evidence that points to the role of ICT intensity in explaining the secular decline in business dynamism.

Original languageEnglish
JournalSmall Business Economics
DOIs
Publication statusAccepted/In press - Jan 1 2018

Fingerprint

Belgium
Dynamism
Institutional environment
Propensity
High-growth firms
Entrepreneurship
Start-up

Keywords

  • Business dynamism
  • Entry
  • Firm dynamics
  • Firm growth
  • High-growth firms
  • High-impact firms
  • Reallocation

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

Cite this

Declining business dynamism in Belgium. / Bijnens, Gert; Konings, Jozef Gerard L.

In: Small Business Economics, 01.01.2018.

Research output: Contribution to journalArticle

Bijnens, Gert ; Konings, Jozef Gerard L. / Declining business dynamism in Belgium. In: Small Business Economics. 2018.
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