Abstract
Start-ups are an attractive topic for research because they are a relatively new and very dynamic business form. They carry out original business ideas, provide a space for self-realization of independent personalities, bring extra earnings, but most of them fail. The aim of the research was to examine whether the business model and start-up team like two basic assumptions are really some reasons of the viability and later potential start-up success. The result of the research is a knowledge on the structure and functionality of the start-up business model and start-up team. The viability of the start-up had been measured in shape of its business performance. An intensity and structure of the relationships between performance of start-up and its business model and team should confirm its capability to survive and thrive. These relationships are modelled on the base of regression analysis. The research has largely confirmed the existence of desired relationships to a certain extent, but the effect of the studied preconditions is internally considerably differentiated.
Highlights
Start-ups are a relatively new and highly dynamic business form, providing space for both individual and team self-realisation, providing space to realize unconventional business ideas, space for quick even exponential growth and scaling
Imperfection, defectiveness or malfunction of business model is considered to be the main reason for start-up failure
Business model with gradual phases of development of business idea increases degree of its development, from Table 1 it is clear that even in first phase it is relatively developed, and progress to final phase does not represent even 1,5 value point, or progress between phases one and five is only 33,3 %, if 4,24 is 100 %, even in phase 2 there is a slight decrease in the degree of model development and increase between phases 4 and 5 is minimal
Summary
Start-ups are a relatively new and highly dynamic business form, providing space for both individual and team self-realisation, providing space to realize unconventional business ideas, space for quick even exponential growth and scaling. Start-ups create new working places; they bear the business risk unacceptable for established companies, they spread an innovative business culture, they are a source of potentially high incomes, as well as unexpected disappointments and failures. American information agency CB Insights (2016) assembled rank of most common causes of failed start-ups, which are a business making without demand, exhaustion of money for the operation, non-collaborative team, smarter competition, wrong determination of cost and price and at last dysfunctional business model. 34) states that these include financial planning, expansion into new markets, resource acquisition (fundraising), critical thinking, the perception of risk, presentation skills, the creation of business models, business intuition, brand building and leadership skills. Founders of start-ups receive a clear signal that they must build a big business firstly which will be later accompanied by financial returns
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