Startup Failure Research Articles

The Third Digital Divide: Digital Identity & Start-up Success

The digital divide concept recognizes that with the rapid pace of technological advancement, actors who lack access to digital infrastructure and the necessary knowledge may not have the opportunity to benefit from the opportunity that digital entrepreneurship offers. Online-exclusive ventures now constitute a growing proportion within the gross population of new ventures started up, especially in China. Digital entrepreneurship is viewed as the new vista where aspiring entrepreneurs are able to rapidly setup and test new business ideas, significantly reducing startup costs and the costs associated with startup failure. A key question for new entrepreneurs, therefore, is: what drives “success” in digital-only entrepreneurship, and are these drivers significantly different when compared to conventional or online-offline hybrid entrepreneurship? Here it is alleged that ‘digital identity’ plays a significant role in determining online-only start-up “success”. Our aim in this paper is to identify the overlaps between ‘identity’ and ‘digital entrepreneurship’ literature to highlight how scholars in the area explain the digital identity formation process, and the manner in which it contributes to start-up success. We situate our paper in the Chinese national context; which represents a unique digital start-up ecosystem, with well-developed routes to business startup. Presented are outcomes from a systematic literature review encompassing 48 publications, including 12 pieces of indigenous Mandarin literature. We identify overarching themes, and how concepts in identity and digital entrepreneurship literature overlap, with a view to explaining the drivers of digital start-up “success”, and as to how these might be further investigated using novel methodology.

What happens after market validation? Experimentation for scaling in technology-based startups

Scaling is one of the most critical phases in the lifecycle of technology-based startups: failure to scale often translates into failure to survive. Entrepreneurial experimentation has emerged as a method to reduce the likelihood of startup failure by anticipating market information. However, previous studies only described experimentation as the means to achieve market validation during the early stages of a startup's lifecycle. In our study, we have inductively investigated experimentation in technology-based startups after they had achieved market validation, conducting a comparative multiple-case study on four technology-based startups operating as digital platforms for financial and marketing services. Our findings conclude that technology-based startups continue to experiment extensively as they scale up. We present a process model of how experimentation for scaling focuses on probing for new customer segments, experimenting on customer relationships and channels, whilst carefully pacing and prioritizing experiments, and selecting the relevant growth metrics to monitor. Our study thus extends the current understanding of entrepreneurial experimentation beyond the accomplishment of market validation to the phase of scaling. This article also provides practical guidelines for technology entrepreneurs to direct their efforts towards experimentation during the challenging scaling phase.

Funding startups using contingent option of value appreciation: theory and formula

PurposeThis paper provides a structural model to value startup companies and determine the optimal level of research and development (R&D) spending by these companies.Design/methodology/approachThis paper describes a new variant of float-the-money options, which can act as a financial instrument for financing R&D expenses for a specific time horizon or development stage, allowing the investor to share in the startup's value appreciation over that duration. Another innovation of this paper is that it develops a structural model for evaluating optimal level of R&D spending over a given time horizon. The paper deploys the Gompertz-Cox model for the R&D project outcomes, which facilitates investigation of how increased level of R&D input can enhance the company's value growth.FindingsThe author first introduces a time-varying drift term into standard Black-Scholes model to account for the varying growth rates of the startup at different stages, and the author interprets venture capital's investment in the startup as a “float-the-money” option. The author then incorporates the probabilities of startup failures at multiple stages into their financial valuation. The author gets a closed-form pricing formula for the contingent option of value appreciation. Finally, the author utilizes Cox proportional hazards model to analyze the optimal level of R&D input that maximizes the return on investment.Research limitations/implicationsThe integrated contingent claims model links the change in the financial valuation of startups with the incremental R&D spending. The Gompertz-Cox contingency model for R&D success rate is used to quantify the optimal level of R&D input. This model assumption may be simplistic, but nevertheless illustrative.Practical implicationsOnce supplemented with actual transaction data, the model can serve as a reference benchmark valuation of new project deals and previously invested projects seeking exit.Social implicationsThe integrated structural model can potentially have much wider applications beyond valuation of startup companies. For instance, in valuing a company's risk management, the level of R&D spending in the model can be replaced by the company's budget for risk management. As another promising application, in evaluating a country's economic growth rate in the face of rising climate risks, the level of R&D spending in this paper can be replaced by a country's investment in addressing climate risks.Originality/valueThis paper is the first to develop an integrated valuation model for startups by combining the real-world R&D project contingencies with risk-neutral valuation of the potential payoffs.

Development and application research of startup failure and operation failure model of emergency diesel generator in nuclear power plants

In order to fully grasp the law of startup failure and operation failure of emergency diesel generator in nuclear power plants, this paper first presents the development method of integrated fault model for emergency diesel generator startup failure and operation failure on the basis of fully integrating the existing mature fault tree analysis methods. Then, taking a certain type of Emergency diesel generator as an example, a complete startup failure and operation failure model was developed, and qualitative analysis and quantitative evaluation were carried out on the basis of the model, which verified the accuracy and applicability of the model development method. Finally, this paper puts forward the qualitative analysis and quantitative evaluation results based on model, which are directly used in the basic application scheme of equipment safeguard measures and the advanced application scheme of dynamic risk assessment and long-term trend monitoring of emergency diesel generator sets based on model + data driven by emergency diesel generator sets. Through the advanced application solution, users can identify dynamic high-risk defects and long-term reliability management weaknesses in advance, and formulate effective short-term fault elimination and long-term fault prevention measures in time to avoid the consequences of startup failure and operation failure. The above research results have important practical significance for the continuous improvement of the startup reliability and operation reliability of emergency diesel generator in nuclear power plants.

Feasibility Study Through Financial Perspective Towards Mental Health-Based Business: Case Study of Ashwa

During the pandemic Covid-19 outbreak, mental health conditions have gotten worse, and it is even worse for adolescents (Hill et al., 2021). One of the biggest causes of mental health issues is depression. Ashwa, a mental health care provider, is here to solve this problem by providing early screening for depression and tele-counseling with expert psychologists. McConnell (2022) found that the majority of start-ups failed, which aligns with Ashwa’s exposure to high risk as an early-stage start-up. Previous studies said that cash flow plays a big role in start-up failure which leads to business unsustainability. The feasibility study can help to determine what is the best strategy for further business development. Taking Ashwa as a case study, this research analyzes the internal and external conditions of the company's financial feasibility. Therefore, the five years financial projections show that the Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR) criteria are acceptable. This project is then considered as financially feasible and the implementation plan is provided at the end of this paper.

Strategy Based Technology-Based Startups to Drive Digital Business Growth

Lean startup methodology-based strategic formulation to promote the expansion of technology-based startup businesses in Indonesia. About 75% of developing startups fail to expand appropriately, which is a relatively high startup failure percentage. Failure of startups is influenced by time and the relevant industry. Due to the wrong approach being chosen from the startup's first year to its fourth, it was unable to expand. The goal of this study is to develop new general methods for company growth based on the lean startup approach. The goal of this study is to use the Delphi technique to find startup failure indicators, and then to select the primary failed cause using the Analytical Network Process (ANP). The research's next phase is to develop the plan after the failure factor has been determined. The researcher acquired 8 as a consequence of this study. 55 indicators of startup failure factors and factors. Using the ANP model, 10 priorities were determined. addressed by developing a new approach utilizing agile development and the minimal viable product idea. technique, human resource management, and customer relationship management. eventually acquired a fresh approach that entrepreneurs may utilize to promote growth.

Double bus failure protection based on zero negative sequence power directional element discrimination

After the fault circuit breaker at the end of the long line of the large mode operation system fails, the composite voltage sensitivity of the 220 kV and above double bus connection failure protection is insufficient, and the line release complex voltage locking function needs to be switched on and off manually, which cannot be automatically adapted after the system mode changes. To solve this problem, the compound voltage locking logic is cancelled, and the zero negative sequence power direction discrimination is used to simplify the startup failure circuit, which improves the adaptability and reliability of line failure discrimination under various operating conditions.

Macro-environmental factors and their impact on startups from the perspective of developing countries

ABSTRACT In a global context, the development of new technologies and becomes an entrepreneurial challenge for the near future. One of the most promising phenomena of this new way are startups. This phenomenon is also emerging in developing countries like Pakistan. However, the success rate of startups is prone to several micro and macro environmental challenges and if these challenges not addressed properly, cause failure of startups. This study intends to contribute to research by proposing a methodological approach to find out the macro-environmental factors and their impact on startups from the perspective of developing countries. Firstly, the PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) analysis is conducted to identify macro-environmental factors displayed in the Cause and effect diagram. Secondly, the Fuzzy Failure Mode and Effect Analysis (FFMEA) is applied to prioritize the risks to devise strategies. Thirdly, to formulate a risk mitigation strategies and policies to support startup ecosystem. The results show that inflation rates, currency depreciation, and corruption are significant challenges for startups. Therefore, this paper aims to help policy makers, entrepreneurs and business schools to work in join collaboration to devise risk mitigation strategies for startups in emerging economies.

Mesoscopic numerical study of the startup characteristics of grooved heat pipe under high heat flux

The dry-out phenomenon that occurs in the evaporation section under high thermal load can lead to heat pipe startup failure, which considerably affects the safe and efficient operation of microelectromechanical systems. In this study, the startup characteristics of a grooved heat pipe are investigated with the mesoscopic lattice Boltzmann method. The focus is on the effects of wettability, inclination angle, and liquid filling volume on the evolution of the liquid supply velocity and dry-spot area. Results show that nucleate boiling can be formed by starting the heat pipe at high heat flux, and the vapor jetting generated by bubble bursting can reduce the liquid supply velocity by more than 70%. Capillary pressure can be increased, and the perturbation of bubbles to the meniscus region can be suppressed by enhancing the wettability of the capillary wick, thus promoting the return of the condensate to the evaporation section. The pressure on the liquid side in the evaporation section decreases as the inclination angle increases, which shortens the waiting time for vapor core formation and improves the stability of boiling behavior. A non-monotonic relationship exists between the liquid filling volume and heat transfer limit time of the heat pipe, which reaches the maximum only when the initial liquid layer fills the capillary wick exactly.

Impact of Schroeder's paradox on cold start-up failure of proton exchange membrane fuel cells: Three-dimension simulation based on OpenFOAM

In the cold environment, the increase in mass transfer resistance enhances non-equilibrium thermodynamic phenomena of the membrane water in proton exchange membrane fuel cells, such as Schroeder's paradox, but these phenomena were ignored in the classic model. In this study, the impacts of Schroeder's paradox on cold start-up failure, especially ice distributions at different temperatures, were discussed. The transfer procedure from the equilibrium to non-equilibrium between membrane water and vapor was described. A non-equilibrium boundedness model was developed and was run in OpenFOAM, and this model was compared to equilibrium unboundedness models previously and equilibrium boundedness models. Results show that non-equilibrium characteristics cannot be neglected at −20 °C. If the boundedness is considered, output voltages of the equilibrium assumption (frozen membrane water) decrease faster than the non-equilibrium assumption. Icing deteriorates the reabsorption capacity of the membrane and enhances the non-equilibrium between the membrane and the environment.

PARADOKS BADAI PHK STARTUP: MENCAPAI SUSTAINABILITY DENGAN PENERAPAN AKUNTANSI MANAJEMEN

The potential for startups to grow is not in line with the success of the startup itself. Finance is one of the problems that causes startup failure. This article examines how efforts to achieve sustainability by applying management accounting to find solutions to startup layoffs. The method used is literature study through review of research results, scientific references, online and offline literature. The result of this article is that startups can consider using an Activity Based Budgeting (ABB) approach to be able to prepare better budgets going forward. one of the causes of failure is the mismatch between the products being developed and market needs, so the application of benchmarking can be considered to rise and develop the business. Using ERP software, startups can create efficiency in work and excel in service so that business goals are achieved.

국내 창업실패 연구에 관한 논문 동향 분석 및 향후 연구과제

This study aims to analyze research trends and present future research directions for a total of 30 papers published in the field of domestic start-up failure research. To this end, studies on start-up failure were classified into research methods and research topics over time. The purpose of this study was to understand the flow and characteristics of the study and to discuss follow-up research tasks to minimize domestic start-up failures. The results derived based on this are as follows. First, looking at the research period, research on start-up failures was conducted from 2004 to 2019, and a total of 13 papers were published after 2020. It is noteworthy that studies before 2019 mainly focused on start-up psychology, failure factor analysis, failure experience, and related studies, and studies on re-starting have been conducted since 2020. Second, as a result of analysis according to the research method, research related to start-up failure is being conducted in various ways, but relatively quantitative research is the majority. Third, detailed research topics were classified into five categories: start-up psychology, failure factor analysis, failure experience, start-up environment, and re-starting. Based on the results of this study, it is necessary to conduct research on the common factors of start-up failure and the importance of start-up failure factors, and future research will help start-ups and entrepreneur policymakers prepare strategies to prevent and respond to start-up failure.

재직근로자의 전직지원 프로그램에 대한 요구분석

Objectives The purpose of this study is to analyze the needs of the outplacement program of workers. to this end, this study conducted a need analysis on 423 employed people working at companies nationwide.
 Methods For the analysis, t-test, one-way ANOVA analysis, Borich needs and the Locus for Focus Model were conducted.
 Results First, the gender, age, educational background, company size, field of employment, and career period of employed workers were all significant. Second, there was a significant difference between the importance and the current level in all items of the outplacement program. Third, the top priority competencies derived from Borich needs and The Locus for Focus model were government-supported reemployment and vocational training education, career goal setting and implementation plan, new technology education, coping plan for workplace difficulties, and job change options, In addition, the next priority was the start-up experience process, success and failure cases, networking with success people, mentoring with start-up seniors, and predicting and preventing start-up risks.
 Conclusions This study presented the priority of the outplacement program for employed workers. in addition, it will help improve the effectiveness of the program in that provides practical guidelines for the operation of the outplacement program.

Why do Indian startups fail? A narrative analysis of key business stakeholders

PurposeThis paper aims to examine the factors that lead to the failure of startups in India and proposes a ‘Four Dimensional (4D) Strategic Framework’ to drive success.Design/methodology/approachThis study is exploratory and uses a narrative analysis methodology to analyse the accounts of key startup stakeholders – founders, investors, former employees and consumers; to identify their failure factors. A conveniently selected sample of 165 startups was studied to understand better the reasons for their failure within a thematic framework developed from David Feinleib’s (2012) handbook “Why Startups Fail”.FindingsResults indicate that a dearth of capital or running out of money and inadequate sales and marketing strategy, which leads businesses to fall behind rivals and lose money on each transaction, are the most common factors for startup failure in India.Originality/value“Startups” are substantial for emerging economies like India because they fuel technological innovation and economic progress and provide for the modern workforce’s needs and aspirations. However, they seem to be typically unprofitable, with a modest probability of survival. Subsisting studies mainly focus primarily on success factors and very few on why startups fail, with significant disagreement on an appropriate methodology. To the best of the authors’ knowledge, this is the first study that analyses failure factors of Indian startups using narrative analysis of its key stakeholders. It aims to aid the conception of profitable entrepreneurship by reducing the failure frequency in the startup and small business ecology.

Intellectual property protection in startups

In recent years, there has been a sharp increase in startups. This enables the rapid development of technology and technological innovation. Many inventors and innovators create intellectual property that is not always adequately protected. When observing the life cycles of startups, it can be noticed that large number of these startups become inactive within the first three years of operation. The aim of this article is to answer the questions: what factors influence startup successes and failures? Is the lack of intellectual property protection one of such factors, and if so, how can startups secure their inventions or innovations? What strategies can be applied to protect intellectual property? What does intellectual property protection look like in Polish startups? Desk research was used as the research method in the article. The literature on the subject was analysed along with the reports and studies of research companies, institutions associating startups and the websites of patent attorneys and law firms that help startups in the protection of intellectual property. Research has shown that, in most cases, startups see the need to protect intellectual property, which is of particular importance in high-tech sectors. Many factors can contribute to the failure of a startup at various stages of its development. It is important that the intellectual property is protected at the initial stage of the startup’s development, and that the company has created and applied an appropriate intellectual property protection strategy.

Investigation on Start-Up Characteristics of Large Axial Flow Pump Systems Considering the Influence of Auxiliary Safety Facilities

A large number of operation practices show that the reliability and stability of large axial flow pump systems will face significant challenges during the start-up process. If the start-up control mode or safety auxiliary facilities of large axial flow pump stations are unreasonable, start-up failure will easily follow. In order to find a scientific control strategy for the start-up of large axial flow pump stations, the start-up characteristics of large axial flow pump stations must be fully understood first. In this paper, based on the secondary development of Flowmaster software, a simulation study of the start-up process of a large axial flow pump system equipped with different safety aids is carried out. It is found that it is a very dangerous start-up control mode to delay the opening of the rapid-drop gate to reduce the maximum reflux value and reflux duration when the pump system is initially started. When the rapid-drop gate opens with a delay of 4 s, the power overload coefficient reaches 23.49, indicating that the possibility of start-up failure of the large axial flow pump system increases sharply the longer the gate delay is opened. The method of adding a flap valve to the rapid-drop gate can significantly weaken the instantaneous impact power of the unit and prevent the unit from overload. When safety auxiliary facilities with an additional disc valve on the fast descending gate are adopted, the backflow coefficient is within 0.2, the impact head coefficient is within 2, and the power overload coefficient is less than 0. The research results will provide an important reference value for comprehensively understanding the start-up characteristics of large axial flow pump stations and finding scientific and safe start-up control strategies.

Study of Safety Auxiliary Facilities to Prevent the Start-Up Failure of Large Axial Flow Pump Systems under Gate Failure Working Conditions

Large axial flow pump systems are used in coastal pump stations. It is common and very dangerous for large axial flow pump systems to encounter the failure of the fast hydraulic gate during start-up operations. Methods for equipping LAPS with reasonable safety aids for start-up operations in order to deal with the unexpected situation that the quick gate cannot be opened, limiting the safety and stability of LAPS, have become a key focus of research. We aim to investigate the effect of safety aids on the LAPS’s start-up characteristics under gate rejection conditions and to find the best safety aid allocation method to solve the LAPS’s start-up failure problem. Based on the verification of the model test, a numerical simulation of the start-up process of the large axial flow pump system equipped with auxiliary safety features was carried out under the condition of gate rejection. The results show that under the condition of gate rejection, the auxiliary FLVA or OVHO can help LAPS reduce the risk of start-up failure to a certain extent. The FLVA will play the main protective role during the start-up operations of the LAPS if the LAPS is equipped with both the OVHO and FLVA of unrestricted size under the gate rejection condition. LAPS equipped with OVHO (1.27 Hm) and FLVA (49.1% Ag) and LAPS equipped with FLVA (49.1% Ag) have comparable start-up safety. The latter has an His of 1.783 Hr and a Pis of 1.30 Pr. The former has an instantaneous shock head of 1.772 Hr and a Pis of 1.30 Pr, which exhibit a decrease of 0.38% and 0 %, respectively. The research results will provide an important reference value for the prevention of pump station start-up failures under gate rejection conditions.

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

A phenomenological exploration of technology start-up failure in Sri Lanka

PURPOSE: The main purpose of this qualitative study was to explore tech start-up failures in Sri Lanka to emerge themes that explain the critical factors that are impacting failures of Sri Lankan tech start-ups and also to identify recommendations that could help evade those factors. The paper also presents the finding to enrich tech entrepreneurs to build their strategies with an understanding of factors that leads to failure and to make well-educated decisions. METHODOLOGY: The study is based on a qualitative research approach that helps to present findings in a theoretical way. A phenomenological analysis has been used to identify, understand, and analyze the phenomena of tech start-up failures. Twelve start-up leaders participated in this study and shared their lived experiences of tech start-up failures in Sri Lanka. Interviews were conducted with them based on twelve interview questions and twelve core themes emerged based on the participants’ lived experiences. In analyzing data, the modified Van Kaam approach was used, utilizing a seven-step framework that considers the structural and textual aspects of experiences, as well as the perceptual characteristics of the phenomenon. FINDINGS: The themes answered the key research question of the study: What are the critical factors that are impacting on failures of tech start-ups in Sri Lanka? The cause of tech start-up failures according to the current study varied including, financial uncertainty, no market research, no product–market fit, paranoid behaviors of innovators, lack of timely response to changing conditions, and location of the venture. IMPLICATIONS: The paper concisely presents twelve critical reasons for tech start-up failures. The results of the research will enable Sri Lankan tech start-ups to identify key factors of failure for the growth of their surviving strategies. Identifying secret obstacles in the industry helps entrepreneurs prepare for pitfalls and provides guidelines for policymakers to make informed choices when implementing national policies. More importantly, it has been discovered that the major areas that require more attention are leadership, funding, marketing, and innovation. Finally, four groups of recommendations have been discussed under financing, market research, leadership, and inventors. ORIGINALITY AND VALUE: The comparison of the current study themes with the findings of related studies is inconclusive because the literature on tech start-up failures in other countries and in Sri Lanka is minimal. Some of the themes align with the findings of research conducted in other countries, although there were some themes that were explored uniquely.

Overshoot temperature control on evaporator wall of loop heat pipe for space vehicle thermal control through bypass line under high thermal load

• The thermal performance of the heat pipe was able to be enhanced by the bypass line. • The thermal performance was significantly enhanced by the bypass line. • Bypass line is a passive means for start-up thermal performance control of loop heat pipe. This paper presents the experimental results of controlling an evaporator wall temperature overshoot problem under a high thermal load by applying a bypass line to the loop heat pipe (LHP). To solve the overshoot problem during the LHP start-up, any nucleation bubbles generated on the wick surface should be removed from the vapor channel as soon as possible. In special cases, a serious evaporator wall temperature overshoot problem at high thermal loads can cause start-up failure. The LHP must be operated stably within an appropriate temperature range during start-up because any sudden rise in the evaporator wall temperature may cause serious damage to the temperature control target. To control the evaporator wall temperature overshoot of the LHP with a flat evaporator and sintered metal wick, a bypass line was installed between the evaporator and the liquid reservoir. The bypass line was integrated into the LHP using a sintered metal wick and flat evaporator, of dimensions (width and length) 40 × 50 mm. The body of the LHP was made of stainless steel, and distilled water was used as the working fluid. The vapor generated in the evaporator was supplied to the vapor transport tube through inverted axial trapezoidal grooves. The inner diameters of the liquid and vapor transport tubes were 2 mm and 4 mm, respectively, and both tubes were 0.5 m long. The input thermal load ranged up to 270 W for a coolant temperature of 10°C. The LHP was aligned at a favorite tilt angle of 15°, where an evaporator wall temperature overshoot was observed. The experimental results demonstrated the ability of the bypass line to effectively control the evaporator wall temperature overshoot during start-up under high thermal loads.