Abstract
Since the mid-2000s, start-ups have increasingly become the driving force of new jobs and growth engines for advanced countries, and emerging nations are striving to vitalize start-ups through active government support policies. However, approximately 30% of start-ups shut down within two years of their foundation. Accordingly, this study determines the factors affecting the business sustainability of start-ups as based on available government support and provides suggestions to increase the effectiveness of the government-supported projects. This study conducted a survey of 273 start-ups in Korea, and empirically analyzed whether factors such as entrepreneurship, market orientation, and network affected business sustainability by using flow experience and entrepreneurial satisfaction as mediators. The results found that entrepreneurship affected business sustainability with flow experience and entrepreneurial satisfaction as the mediators, while market orientation affected business sustainability using flow experience as the mediator, and network affected business sustainability with entrepreneurial satisfaction as the mediator.
Highlights
The global craze of start-ups has been in effect since the mid-2000s and the trend is expected to continue
Based on the literature review, this study provides the following hypotheses that assess whether business competency factors such as the entrepreneurship, market orientation, and network of start-ups based on government support can have a positive effect on entrepreneurial satisfaction: Hypothesis 4. (H4) The entrepreneurship of start-ups based on government support will have a positive effect on entrepreneurial satisfaction
The results of the analysis showed that, in start-ups based on government support, entrepreneurship had a positive effect on business sustainability with flow experience and entrepreneurial satisfaction as the mediators
Summary
The global craze of start-ups has been in effect since the mid-2000s and the trend is expected to continue. Leading global IT companies such as Google, Facebook, Uber, and Airbnb have brought innovation to the transportation and lodging industry, while Dropbox has popularized the Cloud service, and Xiaomi is often referred to as the Apple of China. All these companies emerged with the start-up craze and have increased their enterprise value by tens of billions of dollars in a short time, growing into world-renowned companies. Since the economic depression of 2009, small and medium-sized enterprises (SMEs) have taken up to 95% of all companies in OECD countries (Organization for Economic Co-operation and Development), with start-ups contributing to the creation of around 60–70% of new jobs [2]
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