TABLE 1


L91355 L91321 L91381
current575475  81
new  57  52  21
632(50%)527(42%)102(8%)


















TABLE 2


L91355 L91321 L91381
27(52%)15(29%)10(19%)


















TABLE 3


L91355 L91321 L91381
38(38%)52(51%)11 (11%)


















TABLE 4


Young retail franchisees only Young retail independents only
1987 net income (mean)-$15,877$10,368
% of firms still   operating in late 199161.3%73.1%


















TABLE 5


Table one: CBO Firms Operating in 1987: A Comparison of Firm Traits for Franchisee and Independent Business Startups (Firms formed from 1986-1987 Only).
Franchises Nonfranchised firms
g744A. Firms in all industries
1987 sales (mean)$440,391$86,489*
1987 net income (mean)$-4,501$15,511*
Total financial capitalization at startup (mean)$94,886$29,319*
% of firms in retailing38.6%16.5%*
% of firms still operating in late 199161.9%68.1%*
g744B. Firms in retailing only
1987 sales (mean)$911,522$130,371*
1987 net income (mean)-$15,877$10,368*
Total financial capitalization at startup (mean)$146,139$45,966*
% of firms still operating in late 199161.3%73.1%*

*Trait differences between the above groups are statistically significant at the .05 significance level.

Source: CBO database.

















TABLE 6


Table two: Late 1991 Status of Young Firms that were Operating in 1987 (1986 and 1987 firm startups only).
All Franchisees All Independent Firms
g744A. Young Firms Purchased from Previous Owner (Ongoing Firms)
1. Operating, same ownership52.4%68.1%
2. Operating, new ownership15.2%13.7%
3. Discontinued by 199132.4%18.2%
g744B. All Young Firms
1. Operating, same ownership54.2%62.4%
2. Operating, new ownership7.7%5.7%
3. Discontinued by 199138.1%31.9%
g744C. Young Firms Started as Births
1. Operating, same ownership56.1%61.5%
2. Operating, new ownership2.6%4.3%
3. Discontinued by 199141.3%34.2%