The Survival Styles of Companies While in a Crisis Phase

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Introduction A number of important studies claim the appearance of the stylized reality demonstrating that company size has been linked with company success and departure (Manj-Antol and Arauzo-Carod, 2008). Smallness has a tendency to maximize company departures (Grilli et al., 2010; Pez et al., 2004), because companies coming into the marketplace with a fairly modest level might face price drawbacks and bigger issues in being able to access capital as well as labour market segments in contrast to well-established companies. Nevertheless, many of us even now understand very little regarding the survival styles of companies while in a crisis phase. A number of factors describe why smaller sized companies might also display greater exit levels while in crises. Smaller sized companies might be much more severely impacted by crises because of restricted monetary, technological as well as human sources and higher reliance on (fewer) clients, vendors as well as markets (Beck et al., 2005; Butler and Sullivan, 2005). On the other hand, smaller sized businesses might be much more versatile in adapting to downturns, becoming much more capable to take advantage of marketplace niches as well as activities seen as an agglomeration economies, instead of scale economic systems, and becoming much less dependent on formal loans in contrast to bigger companies and therefore much less inert as well as much less exposed to sunk expenses (Tan and See, 2004). Within this paper we

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