The Factors of Growth of Small Family Businesses - A Robust Estimation of the Behavioural Consistency in Panel Data Models

Abstract

The paper quantifies the role of factors associated with the growth (or decline) of micro and small businesses in European economies. The growth is related to the levels of employment and value added in enterprises, as well as, ten institutional variables.

We test the data for onsistency of behavioural patterns in various countries and gradually remove outlying observations that can lead to erroneous conclusions when using the classic estimators.

Keywords

• family business
• robust estimator
• LTS
• fixed effects