Startup Failure Research Articles

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.

Unraveling the Collapse: A Study of Failed Startups in India

The Indian startup ecosystem has experienced remarkable growth in a relatively short period, driven by a combination of factors such as government initiatives, improved access to capital, demographic strengths, and rapid technological advancements. Despite ongoing challenges, the resilience and creativity of Indian entrepreneurs continue to foster innovation and inspire optimism for the future. Startup failures in India highlight the importance of adopting a comprehensive approach that includes sound business planning, strategic resource management, and a resilient entrepreneurial mindset. With the right mix of policies, infrastructure, and investment, India is well-positioned to become a global hub of innovation, generating employment, boosting economic growth, and addressing some of the world’s most pressing issues through entrepreneurship. This paper examines the key factors contributing to the recent struggles of startups in India, focusing on 12 companies.

A Descriptive Study on Entrepreneurial Ecosystems from the Lenses of Jaipur Based Startups

Today's generation seems to be more interested in entrepreneurship. The number ofindividuals taking the risk to launch their own company has significantly increased. India is no exceptionto the entrepreneurial bug. Young Indians are increasingly letting go of their fear of failure and enteringthe perilous realm of startups over the years. These business owners need the aid of a robust ecosystemto guide them on their quest to launch a profitable venture. Such firms work to improve people's lives bygenerating employment for the neighborhood, boosting the economy, and generally making thingseasier. Startups may access resources in a setting that is provided by entrepreneurial ecosystems. Thisstudy deepens our knowledge of the traits influencing how startups engage with their entrepreneurialenvironments. The survival of start-ups in the entrepreneurial ecosystem is a topic of investigation.

Causes of Business Success or Failure of Start-Ups Company-A Case of Kathmandu Valley

This study examines the causes of business success or failure of start-ups in Kathmandu Valley. Business success is the dependent variable. The independent variables are suitable environment, self-motivation, family background, ICT, product and services, strategy, resource and finance. The primary source of data is used to assess the opinions of the respondents regarding the causes of success or failure of start-ups in Kathmandu Valley. The study is based on primary data with 122 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and importance of factors associated with causes of business success or failure of start-ups companies in Kathmandu Valley. The result shows that suitable environment has a positive impact on business success. It indicates that suitable environment for starts up leads to business success for Nepalese start-ups companies. Likewise, self-motivation has a positive impact on business success. It indicates that higher self-motivation leads to business success. Similarly, family background has a positive impact on business success. It implies that strong family background of the business person leads to business success. Similarly, ICT has a positive impact on business success. It indicates that use of information communication technology in the organization leads towards business success. Similarly, product and services has a positive impact on business success. It indicates better the quality of product and services business offering, higher would be the chances of business success. In addition, strategy has a positive impact on business success. It indicates that the most effective strategy leads towards business success. Likewise, resource and finance has a positive impact on business success. It indicates that maintaining a good balance between resources and finance leads towards business success.

Financial Feasibility of Service-Based Business

In Indonesia, over 6,300,000 toddlers are affected by stunting. Research indicates that the prevalence of stunting among children of working mothers is 30.6%. Despite the associated health risks, many working mothers prefer formula milk as a substitute for breast milk. Mengasihi, a health technology start-up providing breast milk powdering services for personal use, aims to offer babies a simple and effective nutritional solution. This study investigates the financial feasibility of Mengasihi as an early-stage start-up. It was found that cash flow plays a crucial role in start-up failure, impacting long-term organizational success. A feasibility study assessed Mengasihi's financial viability, analyzing internal and external financial conditions using criteria such as Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR) based on five-year financial projections. The results indicate that the Mengasihi project is financially viable, and an implementation plan was provided as part of the study.

Culture Matters with Bad News! A Large-Scale Study of Media Coverage after Startup Failure

Culture Matters with Bad News! A Large-Scale Study of Media Coverage after Startup Failure

Frictional aging in microscale structural superlubric graphite contacts

Devices based on structural superlubricity (SSL) technology are characterized by energy efficiency, low wear, longevity, and superior performance. However, the ubiquitous phenomenon of frictional aging, where static friction increases with contact time, can lead to issues such as startup failure and return-to-origin failure in SSL devices. To date, frictional aging in SSL systems has not been studied. This paper delves into the frictional aging behavior of SSL graphite systems. Our research reveals that microscopic graphite flakes in contact with various substrate materials, including silicon, exhibit significant frictional aging from 1 to 100 s of contact time. The static friction of graphite–silicon pairs logarithmically increases with contact time and remains constant or decreases with load. Furthermore, by comparing static friction values of graphite flakes in contact with small silicon mesas and silicon flat area, we decoupled the contributions to the total static friction from the edges and in-plane area of the contact and found that in-plane contributions could be close to or even larger than edge contributions, challenging the traditional belief that friction of a graphite flake is dominated by the edges. These results enrich the basic understandings of structural superlubricity, lay the foundation for developing techniques to effectively mitigate edge effects, and provide important references for the design of future SSL devices.

Comparative Study of Startup Success and Failure: Lessons from Prominent Ventures

By contrasting five successful businesses (Zomato, Paytm, Urban Company, Flipkart, OLA) with five unsuccessful startups (TinyOwl, Stayzilla, Housing.com, Dazo, PepperTap), this research explores the elements that contribute to the success and failure of startup enterprises. Numerous business factors are examined in this analysis, such as consistent leadership, investment plans, market demands, business environment, resource availability, and technology adoption. With the use of a comparative analytic approach and a quantitative research design, the study attempts to offer thorough insights into the crucial factors that determine startup success or failure

Study on Start-up Success Factors on Rural Area: - A Case Study of FoodVastu Online Delivery

The goal of this study is to better understand the factors of start-ups in rural areas. Well, understanding of factors may not lead to the failure of the start-up. Small business owners are worried about the startup strategies because about 50% of new small startups fail during their first 5 years of operation. When starting a business in rural areas people are not aware of the technology and concept of time saving. Market entry strategies analyze if the problem is genuine or not for the public. This study finds and investigates some elements that have a substantial impact on the success or failure of start-ups. Making aware to the public aware of rural areas' technology is the future. Start-up should be the problem-solving of people which they are facing. Make a start-up on the trial stage and gather feedback from the pilot audience that the start-up is solving the problem you identified. Data was collected through the customer survey. Using technology that is easily adapted by the population of rural areas (WordPress, Wix, Shopify, etc.). Start-ups help to generate employment in the rural area. Helps in the economic growth that will help the area to be developed. UI of any start-up based on tech in rural areas should be very user friendly which will help to learn quicker to any user. Make your product or service that fits the market or not.

Why do startups fail? A core competency deficit model.

A growing body of work aims to explore the reasons behind startup failures. However, there is a need for integrative approaches organized around conceptual frameworks to avoid fragmented and perplexing knowledge about these reasons. To our knowledge, no previous research has systematically investigated the role of competency deficits in startup failures, a crucial element of these failures. In our study, we adapted Spencer's behavioral competence model specifically for startups to identify the competencies within startup teams that, according to their Chief Executive Officers, contributed to their downfall. Three coders meticulously analyzed 50 online accounts of startup failures using a modified Critical Incident Technique. This analysis revealed two prominent competency deficits as pivotal determinants of these startups' outcomes: information-seeking and customer service orientation. Additionally, deficits in technical expertise, analytical thinking, and flexibility emerged as significant factors contributing to these failures. The competency deficits identified in this study offer focal points for evaluating and enhancing startup teams, thereby helping to prevent failure.

Strategi Inkubator Bisnis Dalam Pengembangan Startup Digital

A startup is a start-up business that creates new products or services and is founded by a group of individuals to find a new business model or service in the dynamics of a developing market. Indonesia is a country with a world startup ranking percentage that occupies 6th position, but data shows that the startup failure ratio is very high. Based on the phenomenon of startup problems that occur, systematic steps are needed in developing startups so that research is prepared in the form of designing startup development strategies through business incubators. The method used in this report is a qualitative method which is descriptive and analytical. To collect data in this research, researchers used observation, interviews and documentation methods, while the data analysis techniques used in this research were; data reduction, data presentation, and drawing conclusions/verification. The strategy prepared by the IBTI Maleo Techno Center to encourage startup development by using targeted steps also looks at several aspects, namely development/management capability aspects, financial aspects, marketing aspects and human resource aspects. This is planned to create long-term business success.

Multi-objective optimization of ice distribution uniformity and startup failure time for cold start of PEMFC catalyst layer based on CTnet and PSO-GA

The distribution of ice in the cathode catalyst layer (CCL) of a proton exchange membrane fuel cell (PEMFC) has a significant impact on cold start. A three-dimensional multiphase numerical model for fuel cell cold start was developed to investigate the first-order finite difference sensitivities of seven selected parameters, namely gas diffusion layer (GDL) porosity, CCL porosity, ionomer volume fraction, inlet temperature, initial membrane water content, catalyst layer (CL) surface area, and initial current, with respect to the uniformity of ice distribution and cold start failure time. Six of these parameters were chosen as inputs for a CNN-Transformers based neural network (CTnet), which was developed using Convolutional Neural Networks (CNN) and the multi-head attention mechanism of Transformers as a surrogate model for cold start. The optimization algorithm PSO-GA was used to find the optimal operating and geometric parameters, aiming to achieve the most uniform ice distribution in the CCL and extend the final cold start failure time. The optimized ice distribution uniformity was found to be 0.204446, showing a 1.1163 % improvement compared to the baseline model. The final cold start failure time was extended by 15.625 % to 185 s compared to the baseline model. The optimized model exhibited a more uniform distribution of ice during cold start, resulting in an extended cold start failure time. This indicates a reduced performance impact on the CCL, thereby improving the durability of the fuel cell. The optimization provides additional time for future auxiliary cold starts, while also enhancing the starting speed of auxiliary cold start through improved ice distribution uniformity.

Understanding the failure process of ventures: a perspective of the behavioral strategy

PurposeThis study aims to endeavor to shed light on the underlying causal mechanisms behind the failure of startups by examining the failure process in such organizations. To achieve this goal, the study conducted a comprehensive review of the literature on the definition of failure and its various dimensions, resulting in the compilation of a comprehensive list of causes of startup failure. Subsequently, the failure process was analyzed using a behavioral strategy approach that encompasses rationality, plasticity and shaping, as well as the growth approach of startups based on dialectic, teleology and evolution theories.Design/methodology/approachThe proposed research methodology was a case study using process tracing, with the sample being a failed platform in the ride-hailing technology sector. The causal mechanism was further explicated through the combined application of the behavioral strategy approach and interpretive structural modeling analysis.FindingsThe findings of the study suggest that the failure of startups is a result of interlinked causes and effects, and growth in these organizations is driven by dialectic, teleology and evolution theories.Originality/valueThe outcomes of the research can assist startups in formulating an effective strategy to deliver the right value proposition to the market, thereby reducing the chances of failure.

Decoding startup failures in Indian startups: Insights from Interpretive Structural Modeling and Cross-Impact Matrix Multiplication Applied to Classification

PURPOSE: Start-ups are widely acknowledged as crucial catalysts for innovation and drivers of economic progress. However, their vulnerability to failure continues to pose a persistent and significant obstacle. In light of this, the study intends to ascertain the various elements responsible for the elevated incidence of start-up failures and examine their contextual associations. It further aims to establish the hierarchical structure and identify the crucial factors of start-up failure. METHODOLOGY: The paper uses the Interpretive Structural Modeling (ISM) approach to determine the structural hierarchy and interconnections among the causes of start-up failures identified through the comprehensive analysis of existing literature and experts’ opinions. MICMAC (Cross-Impact Matrix Multiplication Applied to Classification) analysis is also being utilized to categorize these identified failure causes into autonomous, independent, dependent, and linking factors by their driving and dependency powers. FINDINGS: A structural framework depicting the interrelationships among the factors has been derived, showing the failure factor, ‘poor market positioning’ factor at the highest level, and the ‘lack of entrepreneurial efficiency’ at the lowest level of the model. The results also revealed that lack of entrepreneurial efficiency, poor management, and external environmental issues are the most significant independent factors upon which all other failure factors rely. It also categorizes ‘poor market positioning’ as the dependent factor, signifying its passive role in the failure of start-ups. IMPLICATIONS: As previous literature has discussed the various factors responsible for the failure of start-ups in isolation, the current study fills out the gap in the literature by establishing linkages among those factors. The study’s insights emphasize the value of effective management teams and entrepreneurial skills in averting start-up failures. It highlights the importance of skill development and mentorship to enhance the capabilities of entrepreneurs and their teams. Furthermore, the research indicates that policymakers and support groups can create focus initiatives addressing issues like market validation, team dynamics, and financial management to enhance the start-up environment. These initiatives may encompass entrepreneurship training, financial assistance, and mentorship through the ‘Start-up India’ Program, Bharat Fund platform, etc. ORIGINALITY AND VALUE: Previous studies on entrepreneurial failure are based on AHP (Analytical Hierarchical Process), content analysis, and quality management methodologies. This is potentially the first study using the ISM-MICMAC approach that explores the complex world of start-up failures in India and illustrates the relative influence and interdependence of various failure factors of start-ups through a hierarchical model.

Analysis of Success and Failure Factors of Sports Startups and Entrepreneurs in Developing Countries

This article analyzes the success and failure factors of sports startups in developing countries. Using a narrative review and descriptive analysis, internal factors such as effective management, experienced teams, innovation, and market alignment are identified as key elements of success. Conversely, poor management, lack of experience, financial challenges, and market misalignment are major reasons for the failure of these startups. External factors like infrastructure, government policies, economic conditions, and market competition also significantly impact the performance of sports startups. Countries with better infrastructure and more government support tend to witness greater success in sports startups. In contrast, bureaucratic complexities and lack of adequate support can lead to startup failure. The article compares success and failure factors across different countries, identifying common patterns among these factors. It also highlights the crucial role of cultural and economic differences in determining the success or failure of startups, emphasizing that startups need to adapt their strategies according to local conditions. Finally, the article provides practical recommendations for entrepreneurs, policymakers, and researchers. It also discusses the limitations of the study and offers suggestions for future research, including the need for deeper cultural and economic analysis and the examination of the impact of new technologies in this field.

Examining the post-COVID-19 Shifts in Startup Valuation Strategies: A Case Study of ABC Venture

The "winter tech" phenomenon, marked by employee layoffs and technology usage decline in leading Indonesian digital startups like Go To and Traveloka, is exacerbated by the COVID-19 pandemic, causing a widespread economic downturn, and revealing financial instability. Despite government support, persistent challenges, notably the correlation between layoffs and startup failures, underscore the role of venture capital. The research focuses on understanding venture capital factors, limitations in valuation methods, and addressing the impact of COVID-19 on venture capitalists and changes in startup valuation practices. This research employs semistructured interviews, primarily with WJA, ABC Venture's Vice President of Portfolio Management, to explore the company's investment strategies. The chosen method aligns with the research objective, offering flexibility for comprehensive insights. WJA's extensive experience and leadership position make him a key informant. The study uses a five-stage thematic analysis process to comprehensively analyze themes related to startup success factors based on interview text. The COVID-19 pandemic has impacted ABC Venture's investments, leading to market corrections and a slower investment pace. However, the rise of online service businesses has increased investment, aligning with the global venture capital market's historic high in 2021. ABC Ventures responds with a cautious approach, emphasizing pandemic-related risk assessment in startup evaluation. They actively seek comprehensive plans from startups outlining strategies for navigating the pandemic before considering funding, focusing on online-centric models, and discovering the "next big thing".

ОСНОВНІ ВИКЛИКИ ТА ПРОБЛЕМИ СТАРТАП-ПРОЄКТІВ У СУЧАСНОМУ БІЗНЕС-СЕРЕДОВИЩІ

One of the most obvious phenomena in the modern economy is the impact of startup projects on the global economic system. It is noted that innovations are mainly stimulated and carried out by a small group of new companies, while most enterprises play a rather limited role. In recent years, the number of start-up entrepreneurs has received considerable attention as researchers, the media, society in general have recognized their role and importance. Startups today are catalysts for economic growth at global and local levels. They have already become a recognized innovative form of entrepreneurial activity with its own peculiarities, advantages and disadvantages. Startup projects attract and generate significant amounts of resources, and are perceived by many as something new, progressive, and doomed to success. Examples of leading companies are often inspiring, but they also create a misleading impression of guaranteed success and unlimited growth potential. An ongoing topic of research in entrepreneurship is understanding the determinants behind the failures and success of new ventures. This is especially relevant for high-tech startups, as these projects are characterized by a high degree of risk in the pursuit of super-fast and significant success, which is much more likely will lead to failure. The article highlights the problematic issues and the main factors that lead to the failure of startup projects. The purpose of the article is to analyze the main current trends related to the startup industry in the context of the transition from the Fourth Industrial Revolution to the Fifth – «Industry 5.0», the main challenges and problems that impede the effective development and scaling and successful implementation of such projects. The general dynamics and percentage of successful and unsuccessful startups, depending on the years of existence of the projects, are determined. The sectoral distribution of startup failures by areas of activity is outlined. The main factors and reasons for the failure of startup projects are identified, systematized and characterized. Relevant conclusions and recommendations for the effective management of startup projects are formed.

Machine Learning Survival Models restrictions: the case of startups time to failed with collinearity-related issues

<p class="MsoNormal" style="margin-top: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: arial, helvetica, sans-serif;">This research evaluates the efficacy of survival models in forecasting startup failures and investigates their economic implications. Several machine learning survival models, including Kernel SVM, DeepSurv, Survival Random Forest, and MTLR, are assessed using the concordance index (C-index) as a measure of prediction accuracy. The findings reveal that more sophisticated models, such as Multi-Task Logical Regression (MTLR) and Random Forest, outperform the standard Cox and Kaplan Meier (K-M) models in terms of predicted accuracy.</span></p>

Inducement mechanism and control of self-acidification in elemental sulfur fluidizing bioreactor

The sulfur fluidizing bioreactor (S0FB) has significant superiorities in treating nitrate-rich wastewater. However, substantial self-acidification has been observed in engineering applications, resulting in frequent start-up failures. In this study, self-acidification was reproduced in a lab-scale S0FB. It was demonstrated that self-acidification was mainly induced by sulfur disproportionation process, accounting for 93.4 % of proton generation. Supplying sufficient alkalinity to both the influent (3000 mg/L) and the bulk (2000 mg/L) of S0FB was essential for achieving a successful start-up. Furthermore, the S0FB reached 10.3 kg-N/m3/d of nitrogen removal rate and 0.13 kg-PO43-/m3/d of phosphate removal rate, respectively, surpassing those of the documented sulfur packing bioreactors by 7–129 times and 26–65 times. This study offers a feasible and practical method to avoid self-acidification during restart of S0FB and highlights the considerable potential of S0FB in the treatment of nitrate-rich wastewater.

Fault Recovery Methods for a Converged System Comprised of Power Grids, Transportation Networks and Information Networks

Recently, triple-network convergence systems (TNCS) have emerged from the deep integration of the power grid, transportation networks, and information networks. Fault recovery research in the TNCS is important since this system’s complexity and interactivity can expand the fault’s scale and increase the fault’s impact. Currently, fault recovery focuses primarily on single power grids and cyber–physical systems, but there are certain shortcomings, such as ignoring uncertainties, including generator start-up failures and the occurrence of new faults during recovery, energy supply–demand imbalances leading to system security issues, and communication delays caused by network attacks. In this study, we propose a recovery method based on the improved twin-delayed deep deterministic algorithm (TD3), factoring in the shortcomings of the existing research. Specifically, we establish a TNCS model to analyze interaction mechanisms and design a state matrix to represent the uncertainty changes in the TNCS, a negative reward to reflect the impact of unit start-up failures, a special reward to reflect the impact of communication delay, and an improved actor network update mechanism. Experimental results show that our method obtains the optimal recovery decisions, maximizes restoration benefits in power grid failure scenarios, and demonstrates a strong resilience against communication delays caused by DoS attacks.