Business Cycle and Startups
Author(s):
Dr. Shashikala. .K
Keywords:
Business cycle, Startup, production, employment, innovation, Macroeconomics entrepreneur
Abstract
This paper shows that business cycle and startups is strongly influenced by aggregate macro economic factor at the time of their entry in to business. Employment fluctuations are cyclical in nature, they persist into later years, and different level employment variations are largely driven by differences in firm size in the industry, rather than the number of firms in the industry. An estimated general equilibrium firm dynamics model reveals the scale of any one business firm is indeterminate or oligopoly in nature, but the demand conditions determine the scale of the industry and the demand by the industry for inputs. In an economy and business with many goods and many factors, the general equilibrium of production requires that the marginal rate of technical substitution between any pair of factors is the same for all goods and all producers using the same nature of factors with identical. The firm’s role is purely passive, and no meaningful boundaries between firms are established. variation by affecting the share of startups with high growth potential. In the aggregate, changes in Startup conditions result in large, slow-moving fluctuations in employment. This paper made attempt to analyse how startups will react to different faces of business cycle.
Article Details
Unique Paper ID: 152507

Publication Volume & Issue: Volume 4, Issue 9

Page(s): 412 - 419
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