Startups: Challenges and Implications to Success

We examine whether founders' backgrounds influence new firm survival in the early years after start-up. We develop hypotheses linking founders' backgrounds to pre-entry capabilities associated with entrepreneurial human capital, highlighting the cases of spin-offs and habitual entrepreneurs. The subject of unemployment-driven entrepreneurship is also explored. We find that specific human capital more frequently found in spin-off founders plays a key role in enhancing survival chances, while more general forms of human capital may help inexperienced entrepreneurs overcome the barrier posed by the critical early years after start-up.

European Business & Management, 2023

The word 'Startup' has become a worldwide phenomenon. Every year millions of startup companies spring up worldwide. These startups have a great impact on the economies of countries in terms of new production and employment. The study aims include studying the concept of startups, examining major challenges facing startups in Nigeria, suggesting key solutions that will ease the pains of startups in Nigeria and identifying the recent efforts by the Government to ease the challenges of doing business in Nigeria. Data was collected from the primary source by using a structured questionnaire. The sample was selected using a stratified random sampling technique. The target respondents were business startups across various sectors of the economy and the year of operations between 1 to 3 years. Data were gathered electronically using Google form from 1078 respondents in Nigeria, out of which valid responses were 1065. Microsoft Excel was used for analysis. The study showed that lack of startup capital, lack of access to an accelerator and access to bank loans were strongly major factors of startup problems for businesses in Nigeria. The important factors for the successful business startup identified include the idea, training, marketing, business model, teamwork and timing were other factors for the success of businesses in Nigeria. Further research can be done on the solutions for startup businesses' access to funds, training, and marketing business models, among others, to sustain business growth in Nigeria. The findings would be valuable to startup businesses, young entrepreneurs, researchers and Government (policymakers) in understanding startup challenges and highlighting the significant support that startup entrepreneurs need. It also offered useful inputs to policymakers in improving the existing entrepreneurial ecosystem in Nigeria.

International Journal of Research and Analytical Review, 2024

Creating new businesses and recognising startups are very important for helping the economy grow. These are pivotal in creating jobs, advancing technology, and diversifying industries. Entrepreneurship involves starting, managing, and running businesses with the goal of making profits, utilizing resources like land, labour, natural reserves, and capital. A forward-thinking entrepreneurial mindset is essential for nations to thrive in today's highly competitive global landscape. This mindset involves exploring new territories, making discoveries, and requires qualities such as creativity, adaptability, persistence, and determination. Innovation and entrepreneurship are closely linked, with entrepreneurs driving innovation through providing resources, funding, and guidance, while innovation provides a competitive edge by enabling differentiation. The Indian Government's Startup India initiative offers eligible companies the opportunity to be recognized as startups under DPIIT, granting access to various benefits including tax incentives, simplified compliance procedures, expedited IPR processing, and more. Innovation involves introducing new ideas, while entrepreneurship involves turning a promising idea into a financially viable business opportunity. The Startup India initiative strives to create an adaptable environment for promoting innovation and startups, promoting sustainable economic growth, and creating significant employment opportunities. Entrepreneurs who embrace innovation are better positioned to adapt to changing trends, technologies, and economic landscapes, setting themselves apart in a competitive market by offering unique value propositions that attract customers and confer a competitive advantage. Innovation is crucial for the pursuit of sustainable business practices. Entrepreneurs have the ability to develop environmentally-friendly products, implement efficient processes, and advocate for responsible resource management, thereby contributing to a more ecologically balanced future.

Economic Annals-ХХI, 2018

Start-ups are an appealing business form that gives space for self-realisation to enthusiastic, brave and creative people. The start-up progress is conditioned by the development of the business model. Other conditions for start-up viability include monetisation of business effort, effective leadership and teamwork, business strategy and external business support. A survey conducted on a sample of 76, 72 and 53 start-ups in three stages in 2015, 2016 and 2017 examined the development of those beginning and imperfect micro-enterprises in Slovakia. The research results are as follows. Start-ups are relatively closed, and their business model is inadequately connected to the environment. Start-ups know their customers well, but they do not know how to get them. They do not create partnerships in a sufficient range and quality. The monetisation of the examined start-ups is a little sophisticated, too traditional and without experimentation. Just less than a third of start-ups sell their basic product or service for free and generate money by selling premium services only. The most developed blocks are still customer value proposition and customer relationships; the least developed blocks are distribution channels and revenue streams. Startuppers rely on the simple assumption that a working business model will provide a lucrative earning directly. The founders of the studied start-ups are capable visionaries, but less competent managers. Start-up teams have demonstrated a high degree of internal cohesiveness and support in unpleasant and unpredictable situations, but they lack a greater formalisation of work in a routine operation. Business strategies of start-ups are ambitious and international, but little verified in a competitive battle. The competitive advantage of start-ups is based on differentiation rather than on low cost. Start-ups do not trust the state support for business; they cooperate with large companies just a little, but prefer to work with the start-up scene and private investors. Start-ups must mature entrepreneurially, enthusiasts must become entrepreneurs and managers, and they have to learn how to monetise their business effort. Start-ups will be most aided by the cultural and civilisation development of a society that recognises entrepreneurship as a natural, useful and honourable resource for the development of the national economy.

Nepalese Journal of Management Science and Research

Start-up Entrepreneurship is crucial for the promotion of research, innovative systems, and self-employment. Entrepreneurs with high potential and calibre are scarce and precious human resources for the country. This paper examines the role played by the Indian start-ups for innovation and economic development, opportunities, and challenges considering start up survival. This research is descriptive in nature, we have studied the need, significance, and impact of start-ups on economic and innovation development, and also will investigate the causes and obstacles of the start-ups in India. Our analysis uses statistical techniques to examine the start-ups as the major success factor for an entrepreneur in India. We have evaluated the positive impact of start-ups on the economic and innovation development of the nation. There were larger policy implications for the promotion of this important sector. Start-ups are basically open organizations, certainly engaged in innovation processes....

2008

2022

Front the current scenario of scientific research about startups, the question that this study focuses on answering is: "How is the current research panorama of competencies used in ventures classified as startups?" To answer the research problem described, the general objective of this study is: (i) to show the current research panorama about startup competencies. As a secondary objective: (ii) to map the main competencies of startups present in the literature. The scientific gap that this work seeks to response is create a competency framework for early-stage enterprises, in this case, startups. A group of competencies of startups operationalized in the literature were founded and can guide the theoretical framework of future works about the startup business environments, the association with their life cycle and main research themes. The database was did to help the systematic review according to these principles [1]: (i) create a research problem that guides the resear...

Proceedings of the 2014 Zone 1 Conference of the American Society for Engineering Education, 2014

This paper will focus on successful entrepreneurship and what it takes to win as well as how incubators facilitate the process of growing start-up and early stage companies or ventures. An incubator case study is included.

Characteristics of entrepreneurship, 2023

For a good reason, entrepreneurship has become a buzzword in today's business world. It's the process of starting, building, and scaling businesses in the face of uncertainty and risk, hoping to generate a profit and create value for society. This paper aims to explore the key characteristics of an entrepreneur, including the positive and negative aspects of these characteristics, and outline the models developed to describe and elaborate on these traits, using real-world examples to illustrate their importance in entrepreneurship. Additionally, the paper will critically analyze the topic and provide validation to gain a deeper understanding of what it takes to succeed in the fast-paced and unpredictable world of entrepreneurship

Advances in economics, business and management research, 2022

This research was conducted to identify factors contributing to start-up performance. In a knowledge-based economy, start-ups in technology can significantly contribute to the development of the economy and society. However, study about the performance of technology startup fragmented into several domains such as Information Technology, Information System, Business and Management, and another domain. Moreover, the performance of established firms and start-ups is quite different. Therefore, a study about their performance is needed. The semi-systematic literature review method was used to collect and select articles that study startup performance from leading publishers. 4,063 articles were screened and selected so that there were 42 articles analyzed in this study. With descriptive analysis, found as many as 58 factors that affect performance. The most studied factors are at the organizational level, especially strategy and capability. This research provides scientific contributions, especially in strategic entrepreneurship, and provides managerial implications for startup managers in identifying factors that affect startup performance.

Foundations and Trends® in Entrepreneurship, 2016

Global Journal of Management and Business Research

This study was alligned with the research about significant role from entrepreneurial self-efficacy (ESE) and innovation to digital startup success (Dessyana & Riyanti, 2017). Those study showed an interesting result from multiple-regression analyses that reveal ESE and innovation contributes 20.8% to business success with ESE regression coefficient is 0.200 (P <0.05) and the innovation of 0.026 (p> 0.05). This means there is a positive relationship and significant role from ESE on business success, while innovation has a positive relationship but insignificant. Meanwhile, in this study, researchers would focused to explore about psychological factor that founder need to build and develop digital startup. Researchers was using mix method approach. Questionnaire about ESE, innovation, and startup success already distributed to 64 founders at previous study. Next, interviews were conducted to know more about what and how a psychological factors shown. The sample was three startu...

International Journal for Research in Applied Science and Engineering Technology, 2020

INTRODUCTION Entrepreneurship refers to a planning and practical execution of a business plan which is profitable though with margin of risk involved. Entrepreneurship makes people think out of box driven by ambition and fuelled by opportunities to remould risk into productive opportunities helpful to boost economy. In many countries it provides major share in job provision (Fölster, 2000, Heyman et al., 2018). Entrepreneurship is main factor in development of a country's economy as it's a leading source of revenue, foreign exchange and jobs for people. Necessary policies are mandatory to ensure successful execution of new ventures to ensure sustainable economic growth (McMullan et al., 1986; Tunali and Sener 2019). Based upon type, extent and urgency of various problems, entrepreneurship offers sustainable, exclusive and ground applicable solutions matching market needs and wants using information-technology. Technology based ventures are dominant in this regard as they offer number of solutions based upon latest information technology models (Kummitha, 2018). People world over are frequently facing new and diverse issues which needs creativity and innovations to resolve for which technology can play vital role (Macke et al., 2018). New business models involving innovation, IT and having problem solving attitude is more likely to get sustainable sooner compared to other ventures as entrepreneurship works on intentions to actions (Souitaris et al., 2007). Various issues regarding primary success of entrepreneurship are of various types involving technology and non-technology issues. Among non-IT, capital constraints (Evans and Jovanovic, 1989), founding experience of project/business leads (Cumming et al., 2016) and previous successful completed projects of entrepreneur (Hsu, 2007) are major constructs as experienced leads can help succeed business (Hsu, 2007; Gompers et al., 2010). Work conducted by Hsu, 2007 has shown that experienced serial entrepreneurs have ability to gain funds, construct a skilled lead but pre-exposure experience (preferable in same field) is also key factor in success of venture (Eggers and Song, 2015; Lafontaine and Shaw 2016). Involvement of experienced staff in business venture thus can decrease its failure risk as well as increase chances of success. Question arises that whether only serial entrepreneurs having diverse experiences have leverage to negotiate better terms? Probably not! as habitual entrepreneurs are more likely to succeed MacMillan (1986). Success in business ventures is very important but failure also provides needful experience which can be leveraged in next business plan and model (Nahata 2019). Besides these non-technology factors, tech-based factors are also involved in success of entrepreneurial ventures. Entrepreneurs which have close insight of market situations tend to introduce products as per available opportunities and gaps which tend to be catchy for customers, this type is called innovative entrepreneurship and involved technology for survey and need determination (Collinson & Shaw, 2001). Innovations in market has a leverage over conventional entrepreneurs who prefer to traditional norms of market. Technology, logistics and innovation-based market purchase and business/product set up is key in business success in modern day (Fairlie & Fossen, 2018). Business ideas and entrepreneurship is a source of wealth, stimulate economies and generate economic stability thus a lot of individuals (476,000 to be exact) annually in US according to Kauffman Foundation (Fairlie, 2014). From the same sources its reported that, 64 million people worldwide and millennials/generation Y/echo-boomers/Generation nest (Weber, 2017) having high affinity in innovative entrepreneurship. In technology boom of entrepreneurship, internet is main factor involved worldwide providing various opportunities and can act as a card out of poverty (Williams, 2018). Web development, ecommerce and affiliate marketing on internet involving millions of online devices has contributed heavily in booming entrepreneurial ventures. For such work to be done effectively, business environment, resources (financial and technical) and skilled team are required (Timmons and Spinelli (2007). The US is considered as hub of string entrepreneurial ecosystem having related people, resources and events (Regele & Neck, 2012; Roundy, 2017). Literature has shown that entrepreneurial education, legal framework, and country polices are also key factors in business support and start-up booming (Hechavarria & Ingram, 2014; Regele & Neck, 2012). Involvement of and expert person which has keen knowledge of complex network development is crucial for sustainability of entrepreneurial ventures as technology based complex frameworks are difficult to interpret (Alvarez & Busenitz, 2001; Barney, 1991). Skills sets needed for launch of successful bossiness venture involve

2016

Section 1: Foundation of the Study Entrepreneurs play a significant role in bringing new products, services, and innovations to the marketplace, which, in turn, promote job creation, economic growth, and lead to prosperity, efficiencies, and competitive advantages (Kirzner, 1973; Nazir, 2012; Schumpeter, 1961). To encourage U.S. economic growth, politicians, government personnel, and educators supported the rapid advancement of entrepreneurship education (EE), training programs and business incubators (BIs) to promote entrepreneurship and develop entrepreneurs (Al-Mubaraki & Busler, 2012; Finkle, 2012). Despite this emphasis on entrepreneurship and new-business development, the majority of new businesses close within the first 5 years of initial establishment (U.S. Census Bureau, 2013). New venture failure is a business problem adversely affecting entrepreneurs with personal unemployment, lost wages and financial capital, personal indebtedness, social and career stigmas, and diminished innovation and creativity (Halabí & Lussier, 2014;

Economics of Grids, Clouds, Systems, and Services, 2019

The literature shows that the failure rate of startups is around 90%. Therefore, it is crucial for investors and financial advisors to be able to spot the 10% which eventually generates higher return rates and bring in greater revenues (Krishna et al., 2016). Investors are highly interested in determining the common features of the successful startups which are able to bring an innovation into a marketplace. Within the context of co-creation of value, big corporations such as Google and Salesforce have devised tools (i.e., digital services) to help firms in selecting which companies they should invest in or form a strategic alliance with. However, the absence of a general conceptual framework in the literature which would help with the selection of startups is quite visible. In this research, critical success factors for strategic alliance making between startups and large sized companies are identified and possible selection methods are discussed. Second, based on our findings a conceptual framework is presented for the selection of successful startups. Semi-structured interviews are conducted at a large scale financial tech company to evaluate our proposed framework. The results of our expert interviews indicate that all the managers who were involved in the selection process of startups agree on the fact that the team experience and the startup's position within its network are highly related to the success of the startup in the future. Furthermore, characteristics of the lead entrepreneur, competitive advantage of the firm's products and the valuable resources the startup has are also ranked among the criteria which managers look into and have strong influence on their decision making. The outcome of this research is beneficial for large corporations as it aims to find a roadmap for corporations when they are taking on new partnerships. The proposed conceptual framework can be integrated with existing digital services to evaluate startups systematically.