New research reveals how market structure impacts firm turnover and growth.
The article examines how firms come and go in different industries. Researchers looked at past studies to see how firms start, close, and move around. They found that small firms grow slower at first. Many new firms don't survive because of tough competition. The size of a new firm depends on the market and its abilities. Different countries don't have big differences in how firms change. Technology and demand affect how firms move. Barriers in the industry can make it hard for new firms to succeed. The study helps explain why some industries have few big players and how barriers affect new firms.