Young Firms Sustainability and Corporate Reputation: A Comparison of the Survival Rates in the US and EU

Although young firms are very vulnerable, significant differences emerge by comparing the survival rates of the companies in the first stage of life in different countries and industries, of different sizes, and with different characteristics of the leader (team of co-founders): education, previous entrepreneurial experience, reputation, etc. Many variables influence the performance of the companies and their chances of survival. Each enterprise is a singularity. Thus, it is methodologically wrong and naive any attempt to de ne ideal models and general “recipes” to reduce the vulnerability of the young rms. This hypothesis is confirmed by the analysis of the survival rates of the young firms born in the USA and in EU. The variance of the five-year survival rate is very high by comparing companies from different nations, of different size classes, those operating in different industries, and those whose leaders have or not have any previous entrepreneurial experience.