Steering through the storm: Managing startup growth and pivots

Most start-ups die and most survivors fail to grow dynamically. The aim of the paper is to summarize the factors found in the international literature, supported by empirical research, that influence the survival and growth of start-ups, and evaluates the results of expert interviews conducted with renowned players in the Hungarian start-up ecosystem. During the research process fourteen expert interviews were conducted and analysed with combined logic, integrating deductive and inductive approaches. Based on the results, there is little overlap among factors identified in the international literature and those highlighted by Hungarian experts as influencing the survival and growth of start-ups. However, international and Hungarian results unanimously emphasize that entrepreneurial education, internationalization, acquisitions and heterogeneity of the start-up team’s knowledge and skills play a significant role in the success of start-up businesses. Despite the limitations of the research, results may prove to be beneficial to both start-up ecosystem players and policymakers.

The startups in India are blooming recently and now India has become the 3rd largest startup ecosystem justafter the United States and China. The culture of startups has been evolving in India, especially in the lastfew years and for that a viable startup ecosystem is of crucial importance. The startup ecosystem can play aconcrete role for a startup to grow and evolve from its infant prototype stage to the final stage of scaling upand generating revenue. The Indian startup ecosystem have got some key players, each playing their role indifferent stages of a startup which are crucial for the growth of startups in future and also to furtherstrengthen the ecosystem. The Indian startups have the ability to cater and contribute much more to the largediverse group of people and on the counter part, the startups can create more number of jobs and can alsogenerate new career opportunities for the young generation in different fields. Indian startups are alsocrucial to raise the standard of living and can definitely add value to the economy. Based on the importanceof startups in India, the researcher attempted to study the trend in rise and growth of startups in the currentscenario considering the key factors involved in the startup ecosystem and to further identify the reasonsbehind the growth of recent startups in the country. The Indian startup ecosystem is very crucial for theevolvement of whole Indian economy at this current juncture and there lies the significance of the study todeeply understand the startup ecosystem of India for its future generation entrepreneurs. Based on theanalysis of the study, it was found out that the startups in India are rising considerably and constant supporthas been provided by the government in form of different schemes and initiatives such that it can contributemuch more to the economy in future.

PurposeThe purpose of this paper is to capture the role of internal and external characteristics in favouring the growth of innovative start-ups at an early stage of their life.Design/methodology/approachThe empirical approach of this paper is based on an econometric analysis applied to all Italian innovative start-ups with four and five years of life. Growth is analysed after four and five years from the constitution, depending on internal investments in research and development (R&D), in tangible assets and on characteristics external to the firm (110 Italian provinces) related to industrial variety, specialisation, public investments in R&D, etc.FindingsThe results achieved in this study reveal the importance of internal R&D investment even though there is missing evidence on the relevance of general and government specific R&D investment in the area. Other interesting results concern the importance of the firm’s involvement in the technological specialisation of the area and the need for general variety in technological diversification in the area to favour the growth of start-ups.Practical implicationsThe results imply that entrepreneurs should evaluate carefully their strategic choices in terms of the location of the start-up and the investment in R&D as these could be important factors for the firm’s growth.Originality/valueThis paper is an original attempt to measure the importance of both internal and external characteristics for the growth of start-ups. Moreover, the analysis covers the overall population of a new interesting category of firm, the innovative start-up.

This study examines the effect of hiring experienced employees on growth of a start-up. Using a unique dataset comprising of employment histories of employees of Indian Consumer Digital start-ups, we contribute to entrepreneurship and strategy literature by looking at the hiring strategies of young firms. Hiring experienced employees can catalyze firm performance in either positive or negative ways. Positive effect can be attributed to the employee experience and the negative effect to the rigidity that they contribute to the existing setup in the firm. Combining insights from the managerial productivity and Information Technology (IT) productivity literature, we extend the arguments to entrepreneurship human capital literature that focuses on the employees and beyond founder human capital. Prior studies find that firms derive significant productivity benefits from the IT investments of other firms from which they hire IT labor, which makes experienced IT human capital a key resource to start-ups. Studies that emphasize on quality of management as a significant determinant of productivity underscore the importance of Non-IT human capital. Categorizing the employees into IT and Non-IT human capital we seek to provide insights that differentiate between the contributions of type of experienced employees. We provide evidence that these effects vary as the start-up matures from a very early phase where the start-up is synonymous with the founder to early phases where growth takes-off and eventually scales to be a larger firm.

Digital technology has spurred the rapid growth of platform-based start-ups. Many studies have focused on the outcomes of platform start-ups’ business models, some have examined how entrepreneurs’ characteristics and cognitive factors affect the business model design (BMD). However, we have insufficient understanding of how platform start-ups’ embedded institutional environments affect the formation of their business model.This study centers on a typical agricultural e-commerce platform start-up to explore how enterprises gradually complete the process of BMD under the influence of institutional factors. The study found that with the growth of start-ups, institutional logic (IL) presents a trend of transformation, and promotes start-ups from the stage of value proposition design through value activity creation, then to the value network through different institutional work (IW) adopted by entrepreneurs so as to gradually form a business model. The study makes theoretical contributions to revealing the diversity of IL as a core driver of BMD, identifying IW as a mediating mechanism between IL and BMD, and presenting a dynamic institutional perspective on BMD evolution

The purpose of the present study is to investigate the role of human resource management (HRM) in the growth of startups. Accordingly, the missions and practices of HRM in startups are identified from the perspective of entrepreneurs and employees. A multiple case study approach is used by focusing on two startups in Iran. Moreover, the data are collected by interviewing one entrepreneur and four employees in each company. Besides, qualitative data are analysed using thematic analysis. Results demonstrated the various types of HRM missions and practices in startups and reflect different perspectives of entrepreneurs and employees of human resources management in these companies. Finally, the results illustrated that HRM can play an important role in the growth of these companies. Although research in the field of startups has increased in recent years, the role of HRM in the growth of these companies has rarely been addressed. The present research helps to expand literature related to the role of HRM in the growth of startups by considering the different perspectives of startups' entrepreneurs and employees.

The integration of technology within the context of start-up enterprises has emerged as a transformative force driving innovation and growth. This paper presents a bibliometric analysis of the literature on the role of technology in propelling business innovation and growth in start-ups. Through a systematic review of scholarly articles, this study aims to uncover key trends, themes, and influential contributions in the field. The analysis employs co-citation networks, author and institution mapping, journal analysis, and keyword clustering to map the intellectual landscape of this dynamic research domain. The findings highlight the centrality of concepts such as open innovation, digital transformation, and disruptive innovation, underscoring the multidimensional interplay between technology and start-up success. Prolific authors and influential institutions are identified, showcasing the collaborative nature of research in this area. The prominence of specific journals underscores the dissemination of knowledge within the academic community. The comprehensive keyword analysis reveals prevalent themes such as business models, performance, and open innovation, as well as emerging considerations including sustainability and barriers. The insights derived from this bibliometric analysis contribute to a deeper understanding of the complex dynamics that shape the symbiotic relationship between technology, innovation, and growth in start-ups.

This study investigates the impact of managerial experience, continuing education, and work-life balance on the innovation and growth of startups in Indonesia. Using a quantitative approach, data were collected from 170 startup managers and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results reveal that all three factors—managerial experience, continuing education, and work-life balance—positively and significantly influence the innovation and growth of startups. Continuing education emerged as the most influential factor, followed by work-life balance and managerial experience. These findings underscore the importance of ongoing learning, experienced leadership, and maintaining a healthy work-life balance in fostering startup success. The study provides valuable insights for entrepreneurs, managers, and policymakers seeking to enhance the innovation capacity and growth potential of startups in Indonesia.

The purpose of this paper is to explore the mechanism of the impact of venture capital on the growth of start-ups and evaluate its effect. This paper analyzes in detail how venture capital contributes to the growth of start-ups from five aspects: capital acquisition, information asymmetry improvement, experience and resource supplement, incentive mechanism creation and signal transmission effect. The study found that venture capital not only provides the necessary financial support for start-ups and relieves their financial pressure, but also reduces information asymmetry and enhances market trust through due diligence and evaluation. At the same time, venture capital institutions also bring a wealth of investment experience and expertise to startups to help them build partnerships and expand market channels. In addition, venture capital institutions also stimulate the enthusiasm of start-up founders and key teams through incentive mechanisms, promoting team collaboration and mutual growth. Finally, the involvement of venture capital institutions, as a signal of enterprise operation ability, transmits a positive message to the market and affects the availability of external financing and listing cost of start-ups. The research in this paper is of great significance for understanding the role of venture capital in the growth of start-ups.

Research Summary We examine the effects of founder teams' firm‐ and industry prior work experience on startup growth in the context of high technology industries. We study these effects both on the early growth of startups and on their growth, after accumulating experiential knowledge. Integrating the literatures on human capital, imprinting and competency traps, we develop a typology of four combinations of founder prior experience: founder same firm and same industry experience, founder same industry but other firm experience, founder same firm but other‐industry experience, and founder other‐industry and other firm experience. Using data from 153 Israeli high technology startups, we find significant variations in the effects of these combinations on startup growth, which also vary between the early and later years of these startups. Managerial Summary Founders play a key role in the lives of their startups, applying their resources, knowledge and experience. Therefore, we ask: how does founder experience influence high technology startups' growth? To answer this question, we examine four combinations of founder prior experience: founder same firm and same industry experience, founder same industry but not same firm experience, founder same firm but other‐industry experience, and founder other‐industry and not same firm experience. Our analyses show significant differences in startup growth based on these combinations of founder prior experience and, importantly, the effect of these four combinations on startups' growth in their early years of existence differs significantly from later years, when these firms can increasingly draw on their own experiential learning.

Although incubation is a well-known and accepted strategy for the growth of business start-ups in Uganda, little is known about its extent. What is known is that the majority of the start-ups fail in less than one year. This study explored the role of incubators on the growth of business start-ups in Uganda. The study interviewed managers of the incubation services and business starts-ups on how they received this support. The study is qualitative and respondents were purposively selected. Key informant interviews and focus group discussions were used to capture the perceptions of the services and how the support enabled the enterprises to grow. The findings show that various services were offered to support the growth of business start-ups. The services ranged from the creation of networks to other business development services such as mentorship, coaching, and marketing. The perceptions of the owners of business start-ups were somewhat mixed because while the majority viewed the support as crucial in the growth of their start-ups, a few others said they did not. Thus, a few owners of business start-up viewed incubators as playing a limited role. The findings are pertinent for policy formulation on the role of business start-ups and for streamlining incubation support processes in emerging economies.

Social entrepreneurship has gradually become an important force to break through market and government failures, and promote social changes by the virtue of its innovative approach to solve social problems. Many social start-ups have been built under the circumstance of the entrepreneurial craze, but the number of start-ups that can achieve steady growth in reality is not satisfactory. The growth of social start-ups faces many problems such as serious resource constraints and sustainable development. Social start-ups often reject the optimal resource allocation in response to resource scarcity and take the resource bricolage model to support business development. However, due to the dynamic nature of social entrepreneurial growth, there may be a complex mechanism between resource bricolage and the growth of social start-ups. Therefore, this study integrates the perspectives of resource bricolage and organizational legitimacy to explore social start-ups’ growth mechanism model by in-depth case studies with four social enterprise cases. Research results show that different types of resource bricolage can help social start-ups obtain different organizational legitimacy. Physical bricolage, skill bricolage and market bricolage mainly help to obtain market legitimacy to promote the economic growth of social start-ups, while labor bricolage and institutional bricolage help to obtain social legitimacy to realize the social value of social start-ups. Meanwhile, different types of social start-ups are different in patterns of legitimacy and degrees of growth at different stages of growth. The above conclusions have some significance. In theoretical aspect, firstly, this study reveals the process mechanism of social start-ups at different stages of growth through case studies, and provides a new research path for enriching and expanding social entrepreneurship research. Secondly, this study embeds the resource bricolage theory into the field of social entrepreneurship, clarifies the mechanism that resource bricolage promotes the growth of social start-ups, and expands resource bricolage theory research. Finally, this study echoes the calling by Wilson et al.（2013）for social entrepreneurship legitimacy to break through the zero-sum game dilemma of the economic and social value, enriching and supplementing the research results in the field of organizational legitimacy. In practice, firstly, this study inspires social entrepreneurs to establish bricolage thinking to ease the resource dilemma through the creative use of resources at hand; at the same time, we should attach importance to and strengthen the role of resource bricolage in the process of obtaining legality, and apply limited resources to the blade”, in order to fit for the time”. Secondly, social entrepreneurs should pay attention to the thinking of the entire enterprise structure and strategy, and understand the interaction between the enterprise and the environment. We need to maintain a relative balance between market legitimacy and social legitimacy through a combination of different resource bricolage models.

The edited book "Entrepreneurship Ecosystem and Opportunities for Startups" provides a comprehensive analysis of the multifaceted components of entrepreneurship ecosystems and their impact on startup growth and success. The authors, a diverse group of researchers, practitioners, and policymakers, delve into the various dimensions of the ecosystem, including access to capital, mentorship, innovation, networking, talent, and regulatory frameworks. Through a combination of theoretical insights, empirical evidence, and case studies, this book highlights the importance of nurturing a conducive entrepreneurship ecosystem to foster innovation and facilitate the growth of startups in a competitive global landscape. It also explores potential opportunities and challenges faced by startups, as well as strategies to overcome these obstacles and thrive in the market. The book begins with an overview of the concept of entrepreneurship ecosystems and the various elements that constitute them. It emphasizes the symbiotic relationship between startups and their surrounding ecosystem and highlights the significance of each element in fostering a conducive environment for business growth. The authors discuss the crucial role of access to capital, mentorship programs, and innovation hubs in accelerating the development of entrepreneurial ventures. In the following chapters, the book delves into the role of networking and collaboration within the entrepreneurship ecosystem. The authors explore how networks can facilitate knowledge sharing, access to resources, and the development of strategic partnerships, all of which contribute to the success of startups. They also discuss the importance of attracting and retaining top talent, as well as the role of educational institutions and government policies in nurturing a skilled workforce to support entrepreneurial ventures. The book then examines the regulatory frameworks that govern entrepreneurship and their influence on startup growth. The authors analyze the impact of various policies on the ease of doing business and the overall attractiveness of a region as a startup hub. They also provide recommendations on how governments can create a more supportive environment for startups by implementing policies that promote innovation and reduce bureaucratic hurdles. Subsequently, the book investigates the challenges faced by startups in different stages of their development, such as limited resources, market competition, and scaling up operations. It presents strategies for overcoming these challenges, including adopting lean startup methodologies, embracing technological advancements, and leveraging strategic partnerships. The authors also offer insights into the role of resilience and adaptability in overcoming setbacks and achieving long-term success. Finally, the book presents case studies from various countries and industries, illustrating the impact of diverse entrepreneurship ecosystems on startup growth and success. These case studies offer valuable lessons and best practices that can be applied across different contexts and regions. "Entrepreneurship Ecosystem and Opportunities for Startups" serves as a valuable resource for entrepreneurs, investors, policymakers, and academics interested in understanding the dynamics of entrepreneurship ecosystems and their role in fostering the growth and success of startups. Keywords: Entrepreneurship ecosystem, startups, innovation, access to capital, mentorship, networking, talent, regulatory frameworks, opportunities, challenges, growth strategies, case studies, resilience, adaptability.

The contemporary market positions digital marketing as a powerful mediator between efficient digital interaction, data interpretation opportunities, and business growth, while extending its impact potential to tackle different growth challenges.As start-ups usually have limited resources and struggle with customer engagement, retention, and other growth challenges, the low investment and dynamic elements of digital marketing tools can be used to support constructive digital interactions impacting start-up growth. Consequently, these links have outlined an extended digital marketing impact in the areas which build on marketing and sales and influence growth components such as product & market testing, customer engagement, and partnership development.Through a systematic literature review, we present a holistic overview encompassing start-up growth areas that use digital marketing. We also discuss how digital marketing efforts complement the start-up maturity. Furthermore, we analyze the differences in B2B and B2C digital marketing usage and discuss how emerging technologies impact digital marketing. The link between the extended digital marketing impact, start-up challenges, and growth areas result in the identification of start-up growth drivers supported by digital marketing. We propose a Macro-Dynamic framework identifying the start-up growth drivers from product, market, team, and finance areas and digital marketing tactics connected to the identified growth drivers.

The purpose of this study is to investigate and analyze the changes in social perceptions of startup growth factors in the period before and after the COVID-19 pandemic using text mining techniques, and to provide useful information for government agencies' policy formulation and companies' decision-making for startup growth in the post-COVID-19 era. The TEXTOM program was used to collect and analyze the data. The analysis methods used were word cloud analysis and frequency analysis through text mining, TF-IDF analysis, N-gram analysis, ego network analysis, and CONCOR analysis. The results of the analysis showed that the words that changed significantly after the outbreak of the COVID-19 pandemic were “finance” from 6th to 12th, “startup” from 10th to 20th, “scale-up” from 16th to 4th, and “innovation” from 17th to 11th. Keywords such as “big business”, “government”, and “economic growth” have not appeared in the top 30 keyword impression frequency since the outbreak of the COVID-19 pandemic. This indicates that the external environmental shocks brought by the COVID-19 pandemic require new ways of growth and innovation, and that startup growth has shifted from 'exogenous structural changes' such as government support to 'autogenous structural changes' based on the startup ecosystem. In addition, since the outbreak of the COVID-19 pandemic, words related to startup growth strategies such as “accelerator”, “power”, “growth platform”, “follow-up support”, “need”, “secure”, “technology”, “barrier”, “foundation”, “market creation”, and “economy” have appeared. Through the CONCOR analysis, we concluded that social interest in the growth of startups is increasing amidst the low growth of the Next Normal, and that internal resource capacity enhancement and the scale-up ecosystem, an environmental factor that can support it, and horizontal networks among firms are key factors as the main drivers of startup growth, and discussed theoretical, policy, and practical implications based on this. Finally, we discuss the limitations and future directions of this study.