Why businesses Ssucceed: financial and non-financial determinants

• Autor(a) principal: João Mário De Almeida Caetano
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/162776
• topic: Smes; Prediction model; Non-financial determinants; Logistic regression; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Micro, small and medium enterprises correspond to 99.9% of non-financial firms in Portugal. These ventures suffer severely from internal and external factors that difficult their maintenance in the market. Matching data from Orbis and Quadros de Pessoal, the current paper studies how financial and non-financial dimensions contribute to the success of a business. Following a logistic regression approach, the designed prediction model precisely forecasts 95.65% and 77.61% of companies failing within one and five years after inception, respectively. It is also able to describe 72.14% of successful firms. The results uncover important insights for different stakeholders in the economy.