Influence of firm characteristics and the environment on hotel survival across MSMES segments during the 2007–2015 period

Abstract

This paper analyses business survival in 11,558 micro, small, and medium-sized firms (MSMEs) between 2007 and 2015 in the Spanish hotel sector. Using hazard models, the aim is to identify the differences in survival determinants among firm sizes, quantifying the importance of the environment during the recent economic crisis. The results highlight the existence of differences. The environment is the main factor influencing the survival of MSMEs, especially in micro hotels. Regarding the hotel characteristics, the evidence shows that performance has a greater effect on survival in the medium hotels than in the micro and small hotels.