Abstract
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.
Highlights
Start-ups, which are often referred to as high growth companies, scaleups, gazelles, new technology-oriented companies, etc. (Eurostat-OECD, 2007; OECD, 2018; Szerb, Vörös, Páger, Ács & Komlósi, 2018; Vecsenyi & Petheő, 2017), are of increasing importance from the research and economic policy point of view, due to their prominent role in economic growth and promoting technological change (Szerb et al, 2018).In the Central and Eastern European region, despite their relatively young and underdeveloped start-up ecosystems, we can experience evolving scientific interest in start-up companies
The focus of their study was on how venture capital financing affects the employment growth of start-ups. Their analysis was carried out under a number of restrictive conditions, the results show that the employment rate of start-ups involving venture capital had increased even before their capital raising, and the increase continued in the months following the capital raising
Survival is the first step in starting a successful start-up business
Summary
Start-ups, which are often referred to as high growth companies, scaleups, gazelles, new technology-oriented companies, etc. (Eurostat-OECD, 2007; OECD, 2018; Szerb, Vörös, Páger, Ács & Komlósi, 2018; Vecsenyi & Petheő, 2017), are of increasing importance from the research and economic policy point of view, due to their prominent role in economic growth and promoting technological change (Szerb et al, 2018).In the Central and Eastern European region, despite their relatively young and underdeveloped start-up ecosystems, we can experience evolving scientific interest in start-up companies. Kubickova, Michalkova & Kroslakova (2018) analysed Slovak gazelles accelerating impact on the economy. They emphasize their positive effect on entrepreneurial thinking, culture and sustainable growth. Melichova, Fazikova & Rohacikova (2019) examined the effect of universities in formation of knowledge intensive ventures Their results show that university spill-overs affects development of knowledge intensive ventures, but only in case of services. Kállay and Jáki (2019) examined the impact of state intervention on the Hungarian venture capital market Based on their results public funding in the Hungarian market did not function as an additional source of finance rather it causes a crowding out effect, gives rise to softer project selection standards and the portfolio financed by public funding is likely to end up below the value of the investment of venture capital funds
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