Abstract
Technology startups are important regional economic engines that are recognized as drivers of sustainable economic growth. Understanding the factors that influence their success is of interest both to the scientific community and to practitioners. However, there is currently no consensus in the literature on how to define the success of a technology startup. Startup success has multiple dimensions and different theoretical approaches and empirical contexts. Therefore, in the present work, our aim is to identify ways of measuring the success of a technology startup. Using a review of the literature and interviews with entrepreneurs and venture capital investors, we identified two common success indicators: achieving significant revenue and obtaining financing. We then analyzed the factors that have the greatest impact on startup success using 340 startups. We used a multivariate model based on independent econometric estimates for each of the two ways of defining the success of a technology startup. The main conclusion is that there are four factors that have a significant influence on the two ways of measuring success: the location of the startup, the promoting partners’ dedication, the age of the company, and the existence of nonpromoting partners.
Highlights
Sustainability 2021, 13, 2242. https://Technology startups are important engines for regional job creation [1,2] and are recognized for their key role in innovation and economic growth [3,4]
From the responses obtained in the first step of our study, we were able to conclude that success can be measured in two ways: the startup manages to achieve significant revenue and the startup receives financing
From an academic point of view, this research contributes to the field of technological entrepreneurship by developing an integrated model of the factors that influence the success of such startups, a task that has been recognized in the literature as difficult
Summary
Technology startups are important engines for regional job creation [1,2] and are recognized for their key role in innovation and economic growth [3,4]. These organizations help traditional sectors develop, adding value to innovation and knowledge [5], and are recognized as engines of sustainable economic growth. Startups show high potential in the medium and long term through their active contributions to a country’s sustainable economic development [6]. Several works have shown that promoting startups is a key action point for encouraging economic growth [7]. As the OECD [9]
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