@article{Miller:334331, recid = {334331}, author = {Miller, James P.}, title = {Survival and Growth of Independent Firms and Corporate Affiliates in Metro and Nonmetro America}, address = {1990-02}, number = {2487-2023-620}, series = {Rural Development Research Report No. 74}, pages = {23}, year = {1990}, note = {The analysis in this report covers four issues that have not been accurately and thoroughly addressed in previous studies: (1) The survival rates of new firms in nonmetro areas, and how these rates compare with metro rates; (2) How rapidly surviving businesses expand employment; (3) Whether or not ownership status is a factor in the rate of survival and growth; and (4) The relationship between ownership status and the location of surviving jobs. Data for the analysis were derived from the U.S. Establishment and Enterprise Microdata (USEEM) files of the U.S. Small Business Administration. The USEEM database is extremely useful for examining how firms operate after they are formed.}, abstract = {Analysis of new firm survival and growth during 1980-86 reveals that local, independent firms survived better and grew faster than corporate affiliates in nonmetro areas. Independent firms quickly reached their optimum size after beginning operation. The rate of employment expansion for nonmetro independent firms was about half that of metro independent firms. Corporate affiliates in traditional nonmetro industries dependent on natural resources and low-wage labor continued to locate mostly in nonmetro areas. In developing future strategies for industrial development, the strengths and weaknesses of corporate ownership and control should be balanced against those of local ownership.}, url = {http://ageconsearch.umn.edu/record/334331}, doi = {https://doi.org/10.22004/ag.econ.334331}, }