Abstract
One of the most obvious phenomena in the modern economy is the impact of startup projects on the global economic system. It is noted that innovations are mainly stimulated and carried out by a small group of new companies, while most enterprises play a rather limited role. In recent years, the number of start-up entrepreneurs has received considerable attention as researchers, the media, society in general have recognized their role and importance. Startups today are catalysts for economic growth at global and local levels. They have already become a recognized innovative form of entrepreneurial activity with its own peculiarities, advantages and disadvantages. Startup projects attract and generate significant amounts of resources, and are perceived by many as something new, progressive, and doomed to success. Examples of leading companies are often inspiring, but they also create a misleading impression of guaranteed success and unlimited growth potential. An ongoing topic of research in entrepreneurship is understanding the determinants behind the failures and success of new ventures. This is especially relevant for high-tech startups, as these projects are characterized by a high degree of risk in the pursuit of super-fast and significant success, which is much more likely will lead to failure. The article highlights the problematic issues and the main factors that lead to the failure of startup projects. The purpose of the article is to analyze the main current trends related to the startup industry in the context of the transition from the Fourth Industrial Revolution to the Fifth – «Industry 5.0», the main challenges and problems that impede the effective development and scaling and successful implementation of such projects. The general dynamics and percentage of successful and unsuccessful startups, depending on the years of existence of the projects, are determined. The sectoral distribution of startup failures by areas of activity is outlined. The main factors and reasons for the failure of startup projects are identified, systematized and characterized. Relevant conclusions and recommendations for the effective management of startup projects are formed.
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