Financial Indicators for Business Surviving Success Based on PSED II

Abstract

Entrepreneurships are impacted by a variety of factors from the external environmental as well as the entrepreneur. These factors have an influence on the success of the founded company. Success of the founded company is defined by the personal motivation of the entrepreneur. In order to achieve the personal goals of the entrepreneur, the founded business need to survive which is referred to as the business surviving success and indicated by financial indicators. Research about the factors that influence entrepreneurship need indicators for the business surviving success to establish a relationship to the surviving success. Literature review of the study shows, that there are no generally used financial indicators. Second part of this study is the analysis of the biggest data set on entrepreneurship PSED II. The data set includes 6000 variables, underneath the revenue and expenses for each year of the founded business. Based on this information, a wide set of financial indicators can be used to relate the variables of the PSED II data set to the business surviving success. This studies identifies additional financial indicators to test variables on the business surviving success of entrepreneurships which cannot found in literature about entrepreneurship. In the study, several variables of the PSED II are suggested to test the relationship between the business surviving success and these factors that influence entrepreneurships.