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From barriers to entry to barriers to survival

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Mounting evidence of a weak relationship between traditional measures of entry barriers and inter-industries variation in the actual rate of entry is the paper's starting point. Distinguishing new, independent firms from plant addition by existing multiplant operators or diversifiers only partially addresses this inadequacy. We therefore develop the concept of barriers to survivals (BTS) as a structural phenomenon operating alongside, but substantially independent of traditional entry barriers. It is postulated that BTS depend on the importance of industry-specific, experience-based assets. Empirical testing on a sample of 160,000 entrants across 120 US industries supports the relevance of the BTS concept

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