The Effects of GDP Growth, Inflation, and Interest Rates on Startup Survival Rates: A Cross-sectoral Perspective

Abstract

The study uses secondary data analysis to investigate the impact of major economic variables, such as GDP growth, inflation, and interest rates, on the sustainability of startups from a variety of industries. The inquiry utilizes a thorough examination of current literature, industry records, and rigorous statistical analysis to understand the complex relationship between economic factors and the lifespan of beginning businesses. The main goal of the study is to provide valuable insights into the deep correlation between economic conditions and the survival rates of startups. This research enhances the current understanding by using evidence to explore the complex challenges and opportunities that exist in dynamic economic situations. The findings are important for policymakers as they offer informed viewpoints to develop initiatives that promote a supportive environment for entrepreneurs. Moreover, investors can utilize the acquired knowledge to make well-informed choices when dealing with the unpredictable nature of investing in startups. Entrepreneurs can also profit from acquiring a deeper understanding of how economic considerations might influence the feasibility of their efforts, empowering them to actively tackle obstacles and take advantage of favorable circumstances. Essentially, this research intends to provide a beneficial resource for stakeholders who want to successfully navigate and prosper in the always-changing environment of startup ecosystems.