Title: Influences on the survival and failure of small firms in Malaysia

Authors: Graham Hall, Kalsom Abd. Wahab

Addresses: Cardiff School of Management, UWIC, Colchester Avenue, Cardiff, CF23 9XR, UK. ' University of Malaysia, Sabah, Malaysia

Abstract: Logit regression is employed on 320 recipients of loans from the Malaysian Youth Economic Trust Fund to identify factors associated with whether they |survived|, defined as fully repaid their loans or |failed|, defined as being rendered involuntarily insolvent as a result of non-repayment. Explanatory variables are measures of human and social capital, motivation, location and types of strategy. Firm age and size are employed as controls. All variables have the expected sign except age and all have a high level of statistical significance, except level of education. Product differentiation appears the most important factor for survival.

Keywords: small firms; business survival; business failure; firm performance; Malaysia; globalisation; loans repayment; involuntary insolvency; human capital; social capital; motivation; location; strategy; product differentiation.

DOI: 10.1504/IJBG.2007.013721

International Journal of Business and Globalisation, 2007 Vol.1 No.1, pp.88 - 106

Published online: 22 May 2007 *

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