Survival of Indian High-Tech Start-Ups: A Comparison Between Transnational and Local Entrepreneurs

Abstract

This paper investigates whether transnational entrepreneurs who create and operate high-tech start-ups in India are more likely to survive and sustain when compared to the local entrepreneurs. Data from 45 high-tech start-ups headquartered across different locations in India were used for the purposes of analysis. The results indicated that transnational entrepreneurs were more likely to achieve survival of their high-tech start-ups in comparison with their local counterparts. In addition, our findings established that young technical transnational graduates, who possessed entrepreneurial experience and who had obtained early funding, would have a higher probability of achieving survival of their high-tech start-ups in India. For policy makers, investors, and practitioners focused on emerging economies, this paper reveals the type and kind of factors that should be examined to enable a vibrant start-up ecosystem in the region.