Startup Founders Research Articles

Creative industries’ business strategies during crises: insights from incubated small business startups

Purpose This study aims to explore the strategies adopted by incubated small business startups in creative industries during the COVID-19 pandemic. To conduct the analysis, the conceptualization of Miles and Snow’s strategic typology was used. The findings of this study could help small business startups deal strategically with future crises. Design/methodology/approach This study used a qualitative approach, and data were obtained through interviews with 15 fashion-related incubated startup founders in Indonesia. Findings The results of this study showed that business strategies implemented by most owners were centered on calculated risk-taking. The main choices comprised the “wait and see” and “seeking new opportunities” approaches. Regarding foresight capabilities of participants of this study, there are some interesting findings that may capture the essence of their capabilities in dealing with future crises. Research limitations/implications The findings cannot be generalized across all creative industries but offer additional perspectives possibly unnoticed by stakeholders. In this regard, the findings could help startups in creative industries take different strategies in specific contexts. Originality/value Small business startups in creative industries are expected to provide different responses to ensure survival because of their chosen business strategies. However, limited information is available regarding how these business entities adapt to a new normal during pandemic crises.

Learning From Failure: How Founders Transform Startup Setbacks into Success

This study explores how startup founders can transform early failures into long-term success. The research aims to identify key strategies and practices employed by founders to address and overcome failures. A Systematic Literature Review (SLR) methodology is utilized to analyze existing studies on startup failures and the recovery efforts undertaken by founders. The findings indicate that successful founders leverage strong business networks, continuous innovation, and personal motivation to propel their companies forward. Additionally, the development of a competent and diverse team, along with effective communication with investors, significantly enhances the likelihood of success. The study concludes that although early failures are common among startups, such failures can become valuable experiences that contribute to future success when managed strategically.

The Role of Business Incubators in Encouraging Maritime Technology Start-up Innovation

This study examines the critical role of business incubators in driving innovation in maritime technology start-ups. With the growing need for innovative technology solutions in the maritime industry, business incubators have emerged as a key catalyst in developing and introducing new ideas to the market. The study used a qualitative approach, involving in-depth interviews with 30 stakeholders, including start-up founders, incubator managers, and maritime industry experts. The results showed that business incubators provide critical support in the form of access to funding, expert mentoring, research and development facilities, and extensive industry networks. The findings also revealed that incubators that focus on the maritime sector are more effective in helping start-ups overcome industry-specific challenges. The study highlights the importance of collaboration between incubators, the maritime industry, and educational institutions to create an ecosystem that supports innovation. Implications of this study include recommendations for policymakers and industry players in designing more effective incubation programs to drive maritime technology innovation.

Changes in networks influencing entrepreneurial activity of start-up founders: The increasing importance of the weak ties

ABSTRACT This study aims to identify the relationship between “weak ties” and entrepreneurial activities among start-up founders through structured interviews with 19 start-up founders whose start-ups are funded by venture capital. The results revealed that these entrepreneurs were more frequently influenced by individuals with weaker relationships, such as acquaintances, seniors, or colleagues, rather than by family or relatives. Previous discussions on the family background of founders have typically focused on small to medium businesses (SMBs) and have generally not considered the size and type of their business. However, a different trend has been noted in recent high-profile start-ups. Due to changes in society and the spread of information technology services, such as social networking services, forming networks has become easier. As a result, people are more likely to be influenced by those with weaker relationships. This study found that the family background of founders of internet-related start-ups, the focus of this research, may differ from that of founders of SMBs. This finding could provide valuable suggestions for policy making and implementation of methods to increase the number of venture capital–backed start-ups and entrepreneurs with an orientation toward rapid business growth, which has been a strong social demand in recent years.

Building innovation ecosystems for circularity: Start-up business models in the food and construction sectors in the Netherlands

The circular economy is a resource-efficient production model that is believed by many policymakers, business leaders, and academics to promote sustainability. Academic literature suggests that circularity is achievable across business scales and types, from multinational corporations to start-ups. One condition for circular transition is the presence of a thriving market and a policy context that supports development and uptake of circular innovations. This study is among the first to analyze the business models of circular-focused start-ups from a systems-based perspective on technological innovation. Examining the Dutch food and construction sectors, the study compares business activities that foster innovation ecosystems. Based on 53 interviews with start-up founders and actors, we examine how firms respond to financial, cultural, and market drivers based on their respective industries' market structures, cultural norms, and growth histories. The results also indicate variability in the practical impacts of circular strategies. While there is some evidence of strategic impact among food start-ups, impacts among construction start-ups are potentially undermined by power imbalances between start-ups and incumbents and by the sector's relatively conservative culture. This comparison is used to develop recommendations for start-ups and policymakers to accelerate circular transition through the development of innovation ecosystems.

Transitory Subject: The Working Life of Indonesian Startup Founders and Professionals

Transitory Subject: The Working Life of Indonesian Startup Founders and Professionals

Social media and entrepreneurial competence: the impact of Linkedin on boosting entrepreneurial engagement of Gen-Z

Research Objective: This study examines the impact of LinkedIn usage on entrepreneurial competence and engagement of Gen-Z aged between 18-27. Motivation: This study is motivated by the increased dependence young entrepreneurs have on social media as a channel for professional development and networking. The study builds on works of Banerji & Reimer, (2019) on start-up founders and their LinkedIn connections, Franc, Stampfl, & Geyer, (2024) worked-related learning on LinkedIn, and Vitelar (2019) on Gen-Z and the use of social media. Idea: This research tests the direct effect of the usage of LinkedIn on Gen-Z individuals' entrepreneurial competence and engagement. It assumes that high engagement in learning and networking activities on LinkedIn will be followed by an equivalent improvement in their entrepreneurial outcomes. In this research, the independent variables are the patterns of usage on LinkedIn, while the dependent variables are entrepreneurial competence and engagement. Data: The quantitative research methodology was adopted, and the survey was conducted through Google Forms among 350 Gen-Z users on the professional networking site LinkedIn. Tools: Descriptive statistics, Pearson's correlation, and multiple regression analyses were used for the collected data. Findings: The results indicated that the different usage patterns—such as the frequency of login and engagement on LinkedIn Learning—had a significantly positive correlation with both entrepreneurial competence and engagement. Regression analysis pointed out entrepreneurial competence as one of the chief predictors for entrepreneurial engagement. Therefore, it is concluded that LinkedIn is quite instrumental in enhancing the entrepreneurial capacity of Gen-Z; it therefore gives relevant insights to entrepreneurs and the developers of this particular platform. Contribution: The paper thereby provides empirical evidence on the specific impact of LinkedIn on Gen-Z entrepreneurs, which enriches the literature of social media and entrepreneurship. Keywords: LinkedIn, Gen-Z, Entrepreneurial Competence, Social Media, Professional Networking.

Determining Factors for Startup Success in Indonesia: Perspective of Young Entrepreneurs

The entrepreneurial ecosystem in Indonesia is expanding rapidly, driven by the active involvement of young entrepreneurs. However, the factors influencing the success of these startups remain understudied. This research aims to explore the key determinants of startup success from the perspective of young entrepreneurs in Indonesia. A mixed-methods approach was adopted, incorporating both quantitative surveys and qualitative interviews with startup founders. The quantitative data was analyzed using SmartPLS, while thematic analysis was applied to the qualitative insights. The findings reveal that market adaptability, financial management, mentorship, and innovation are the primary factors contributing to the success of startups. These elements are crucial in shaping the sustainability and growth of startups in the Indonesian context. Understanding these factors can provide valuable insights for aspiring entrepreneurs, investors, and policymakers, helping to create a supportive environment for startup development and success.

Perceived Success and Entrepreneurial Identity in West Africa

This research aims to understand the Fake It Until You Make It (FIUYMI) culture and its impact on entrepreneurial identity in the West African startup ecosystem. Self-presentation is important for entrepreneurs and often they tend to exaggerate their success. In West Africa, this is usually the case for entrepreneurs that want to gain social acceptance among their peers and to secure funding. It is represented by a desire of belonging and is amplified with digital social platforms and peer pressure. This study aims to evaluate the impact of perceived success using mixed methods research with both qualitative and quantitative data. The qualitative phase consists of semi-structured interviews with 20 startup founders from West Africa. The initial objective is to understand the motivations behind employing FIUYMI behaviour and its effect on the entrepreneurial identity and sense of success. A structured survey is then conveyed to 50 startup founders across the same region. The second objective is to quantitatively assess the prevalence of this behaviour and its impact on self-perception, and psychological well-being. Results suggest that FIUYMI is at first a good strategy for entrepreneurs to enhance perceived credibility and attract support and can be a positive tool for entrepreneurs to some extent as it boosts their confidence and network. It may later lead to psychological stress and has a perverse effect on entrepreneurs of not belonging to their community: Even when they achieve their desired outcome, they may consider their achievements to be fraudulent which is linked to a sense of imposter phenomenon. The research goal is to understand the complexities of perceived success and the ‘Fake it Until You Make it’ attitude in the West African context informing effective interventions in entrepreneurial behaviour. By showing its negative impact on an entrepreneur's journey, the research also aims to enhance accurate self-presentation and contribute to a more trustworthy entrepreneurial ecosystem in West Africa for entrepreneurs and investors.

Examining the relationship between organizational capabilities and business sustainability among start-ups: a dynamic capability view

PurposeStart-ups require a competitive advantage to integrate sustainable practices and develop organizational capabilities to thrive in dynamic business environments. However, implementation of these practices presents several ethical challenges. This study aims to quantify the influence of organizational capabilities (information technology capabilities and organizational virtues) on start-ups' competitive advantage and readiness to implement environmental, social and governance practices.Design/methodology/approachThis study employed a survey design, and data were collected from 320 start-up founders and/or managers in India. The data were analyzed using Smart PLS 4.0.FindingsThe findings suggest that organizational capabilities, including information technology capabilities and organizational virtues, play an important role in enhancing start-ups' competitive advantage and readiness to implement sustainable practices. Dynamic capability mediates these relationships, while entrepreneurial orientation moderates the relationship between organizational virtues and dynamic capability.Practical implicationsThis study has significant implications for organizations implementing sustainable business practices through the development and nurturance of organizational virtues and information technology capabilities. The study is also useful for leaders, managers and entrepreneurs in training and development, managing tradeoffs and maintaining important organizational capabilities to establish a balance between people’s concerns, the environment and profits.Originality/valueFew studies have examined the role of organizational capabilities, sustainable business practices and competitive advantage in the context of start-ups. This study contributes to the literature on sustainable entrepreneurship and organizational capabilities.

Incubating innovation: the role of incubators in supporting business model innovation

Purpose The role of incubators in promoting startup growth has received close research attention, but the findings paint a conflicting picture. This study aims to reduce the ambiguity surrounding incubator impact by exploring how incubators can support startups with business model innovations – a significant growth factor for startups neglected in the incubation literature. Design/methodology/approach Using a multiple-case study design, the authors conducted semistructured interviews with incubator directors and startup founders, offering insights into their experiences. The transcripts were coded following the Gioia method. Findings This study shows that incubatees are exposed to and struggle with business model innovation. Therefore, this study explores how incubators can support startups in innovating their business models. Research limitations/implications This research reveals the importance of addressing the psychological needs of entrepreneurs in incubators. By offering emotional support, incubators can create a positive psychological environment, helping entrepreneurs face fears and challenges. This highlights the human side of entrepreneurship, which has not been considered in the incubation literature. Practical implications Incubator directors can strengthen their programmes’ impact by offering tailored support for business model innovation and facilitating network connections. Policymakers should encourage ecosystem collaboration and allocate resources to effective programmes. Originality/value This research fills a gap in the incubation literature by emphasizing the significance and need for support for business model innovation. This study also offers original insights into the psychological dimensions of entrepreneurship.

Do the Characteristics of Startup Founders Matter for Funding Performance?

Introduction/Main Objectives: Based on the upper echelons theory, this research examines the role of startup founders' characteristics on startup funding performance (SFP). This study considers the founder's experience, education, and gender as the characteristics that positively affect the SFP. Background Problems: While academia and industry emphasize the importance of startup funding performance (SFP), the empirical evidence on its determinant has received less attention. Yet, upper echelons theory addresses the importance of a leader's characteristics in increasing the organization's performance. Therefore, the current study focuses on investigating the role of startup founders' characteristics in the SFP. Novelty: The current study proposes the founder's characteristics as the key factor for startup funding. Unlike previous studies, this study utilized a survey design to answer the research question. Additionally, this study is the pioneer for entrepreneurial finance studies in gauging the upper-echelons framework. Research Methods: This research collected information from 228 Indonesian Startups through a survey. The estimation model is estimated using robust cross-sectional OLS regression and logistic regression. For robustness purposes, this study tackles the endogeneity issue by using two-stage least squares (TSLS) and PLS-SEM. Finding/Results: The regression results (including the two-stage least square approach) reveal that education and gender play a significant role in SFP but not experience. Moreover, it shows that higher education would increase a startup's probability of having better funding. Meanwhile, male entrepreneurs have lower funding performance than women entrepreneurs. Conclusion: Our study surmises that the education of the founders is crucial for startup financing in Indonesia. It also shows that the experience of founders has a trivial effect. It supports the upper echelons theory, emphasizing the pivotal role of founders' characteristics in entrepreneurial finance. Policy-wise, focusing on education can enhance startup success while addressing gender disparities is crucial. However, limitations exist, suggesting the need for longitudinal studies and broader sample sizes. Future research could explore managerial abilities and cultural factors, offering fresh insights into the literature.

Psychometric Properties of the Turkish Version of the Entrepreneurs' Social Identity

This study aimed to assess the psychometric properties of the Turkish adaptation of the Entrepreneurial Social Identity Scale developed by Sieger et al. (2016). The factor structure, construct validity, and reliability of the Turkish version were analyzed. Convergent validity was examined in relation to entrepreneurial self-efficacy and entrepreneurial career motivations. Discriminant validity was tested by examining its relationship with locus of control, subjective norm, risk perception, and uncertainty avoidance. A total of 216 startup founders in technoparks participated. Findings indicated acceptable goodness-of-fit indices for the scale's factor structure, supporting its three-factor structure. In conclusion, there is substantial evidence supporting the psychometric properties of the Entrepreneurial Social Identity Scale.

Reimagining entrepreneurship by utilizing venture dynamics in sharing economy: Evaluating the symbiosis of macro and micro factors for sustainable capital flows in developing markets

AbstractVenture capital (VC) plays a vital role in fostering revolution and entrepreneurship in emerging economies. However, attracting VC investments remains a significant challenge for startups in these markets. This study investigates the macro and micro factors influencing VC attraction in the Bangladeshi startup ecosystem, employing a mixed‐methods approach. A systematic literature review was performed to recognize the key factors influencing VC attraction in emerging markets. Qualitative interviews with 20 stakeholders, including startup founders, investors, and policymakers, were undertaken to gain insights into the challenges and opportunities for VC attraction in Bangladesh. Quantitative analysis of secondary data on VC investments and startup characteristics was executed to examine the associations connecting the identified factors and VC investment amount. The findings reveal that government policies, human capital availability, and informal institutions are critical macro factors influencing VC attraction, while founder and team characteristics, business model and scalability, and traction and validation are key micro factors. The study contributes to the literature on VC in developing economies by providing a comprehensive examination of the interplay of institutional, human capital, cultural, and startup‐specific factors shaping VC investment decisions. The findings have important implications for policymakers, investors, and entrepreneurs seeking to foster a more vibrant and sustainable startup ecosystem in Bangladesh and beyond. The research underlines the need for a holistic approach to addressing the challenges and leveraging the opportunities for VC attraction in emerging markets.

Human Capital of East Asian Start-up Founders and Entrepreneurial Orientation: A Three-Country Study

Human Capital of East Asian Start-up Founders and Entrepreneurial Orientation: A Three-Country Study

Navigating start-ups: a qualitative exploration of causal and effectual decision-making in entrepreneurial marketing

Purpose This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends research on the distinct EM dimensions to the behavioral context by revealing how causation and effectuation principles shape entrepreneurs’ actions. Design/methodology/approach The study investigates EM behavior through 12 semi-structured interviews with 10 start-up founders and two founder associates in Germany. Use of established frameworks of the EM dimensions and causation/effectuation principles paves the way for an in-depth analysis. This methodology uncovers a distinct pattern of decision-making behaviors characterizing various activities within start-ups. Findings The findings show that causal logic prevails in start-ups’ EM, and effectual reasoning serves a complementary role. On the dimensional level, the findings reveal a predominant goal-driven focus on customer intensity and value-creation processes. Predictive logic guides opportunity focus, proactiveness and risk management, with nonpredictive behaviors providing adaptability. The principle of affordable loss is also evident in risk management. Finally, start-ups exhibit a blend of causal and effectual logic in innovativeness and resource-leveraging. Originality/value To the best of the authors’ knowledge, this study is the first to illuminate the interplay of behavioral logics in start-up firms’ EM by exploring the nuanced principles underpinning the decision-making processes of entrepreneurs. In doing so, it advances understanding of the marketing–entrepreneurship interface and enriches decision-making literature.

Brain gain and country's resilience: A dependency analysis exemplified by OECD countries

Research background: In the light of growing demand for highly skilled workers, driven by rapid changes in the labour market and business environment, the ability to attract the talented determines not only business performance, but also macroeconomic development prospects. This stimulates national governments to create positive conditions for the development and use of the human capital of migrants. One of the most important factors of brain gain can be country stability as a sign of a comfortable environment for the realisation of intellectual potential. Purpose of the article: The study aims to investigate the links between the factors of country’s resilience and brain gain, including its partial indicators. Methods: For a comprehensive assessment, migration indicators were used by categories of talented migrants: highly educated workers, foreign entrepreneurs, university students and start-up founders that we integrated into an integral index of intellectual migration. The data was collected for OECD countries for 2023. The authors used the methods of statistical and correlation-regression analysis, economic-mathematical modelling in the GRETL software environment. Findings & value added: Research has shown that the components of country’s resilience (especially Economic resilience and Supply chain) have a positive effect on brain gain. Considering the partial indicators of brain gain, it is found that resilience in the country of destination has the greatest influence on the migration decisions of highly educated workers and foreign entrepreneurs, i.e. migrants with a positive experience of economic activity and entrepreneurial capital, which, in turn, strengthens the resilience and competitiveness of countries. Such conclusions are important for the improvement of brain gain management programs in terms of the development of the environment for the attraction and retention of talents.

Technology start-ups in tourism and hospitality: A networked social capital theory perspective from early-stage start-up founders

Technology start-up entrepreneurship serves as the backbone of innovations within the tourism and hospitality industry. However, there is a lack of comprehensive research investigating the perspectives of founders who are the original innovators. Via social capital theory, this study aims to explore the entrepreneurial processes of founders during the critical early stages, determining the survival of technology start-ups. The research adopts a qualitative in-depth interviewing approach with seventeen early-stage tourism and hospitality start-up founders in Hong Kong and Thailand. By employing abductive thematic analysis, the study develops a novel conceptualization of the networked social capital, comprising four interconnected themes: team building, fundraising and resource acquisition, collaboration and partnerships, and credibility building. Also, the study highlights the evolving social dynamics among start-up ecosystem actors influenced by cutting-edge technologies. This study contributes to the tourism and hospitality literature and offers practical implications for start-up entrepreneurs, public policymakers, and tourism and hospitality firms.

Exploring macro-environmental catalysts and barriers of healthcare 4.0 transformation in Central-Eastern European countries: A comprehensive study in Hungary

The pursuit of a secure, efficient healthcare system responsive to patient needs remains a crucial goal for developed countries. Governments, grappling with rising healthcare demands, are increasingly turning to technological innovation as a transformative solution. Healthcare 4.0, integrating cutting-edge industrial technologies, aims to enhance patient experience, promote health, control costs, and boost clinical satisfaction. The COVID-19 pandemic has catalysed investments in digitalisation, but the promises of Healthcare 4.0 are still seemingly unrealized. This is especially true in the Central-Eastern European (CEE) region, particularly in Hungary, where substantial Industry 4.0 innovation potential intersects with shrinking financial resources, a challenging political environment, a transitioning healthcare system hindering the widescale transition to Healthcare 4.0. Thus, this paper aims to explore the macro-environmental factors influencing Healthcare 4.0 adoption in Hungary. Leveraging qualitative content analysis of interviews with 21 Hungarian healthcare technology startup founders, we aim to map the catalysts and barriers of a Healthcare 4.0 transition using a PESTLE framework. This explorative study contributes to the literature with valuable insights from the innovators' perspective, serving as a foundation for future policy interventions in the quest for widespread Healthcare 4.0 implementation.

Innovative Pathways to Social Transformation: Disruptive Maintenance Through Social Impact Start-ups in Kerala

This article describes an emergent innovation ecosystem in the southern Indian state of Kerala. In contrast to a dominant national imagination of start-ups in India as spaces for the development of novel products with high economic potential, we suggest that start-ups in Kerala exhibit a tendency towards ‘social innovation’, that is, start-ups that are strongly oriented by the goal of addressing particular societal needs in addition to being successful on the market. Drawing on ethnographic interviews with start-up founders and other related stakeholders, as well as media and documentary analysis, we highlight in this essay key characteristics of social innovation in Kerala, including their reliance on tech-fix approaches. We also highlight the central role of the Kerala Start-up Mission (KSUM), a state-sponsored nodal agency, as a crucial enabler and shaper of the state’s innovation ecosystem. We further suggest that even as this innovation ecosystem is able to address important societal concerns, it nonetheless bypasses underlying social structures that produce them in the first place. Building on the work of sociologist Cornelius Schubert, we argue that it is analytically productive to interpret social innovation in Kerala as an instance of ‘disruptive maintenance’.