Survival Of Start-ups Research Articles

You are only as strong as your weakest link: Founder and community social capital and start-up survival

You are only as strong as your weakest link: Founder and community social capital and start-up survival

Influence of Financial Intermediation on Sustainability of Youth Owned Enterprises in Western region, Kenya

Purpose: Despite the challenges besetting youth-owned enterprises in accessing funds from sources such as YEDF, county youth funds, Uwezo Fund, and Women Enterprise Fund, the financial sustainability of the enterprise remains an issue. This research investigates the influence of financial intermediation on sustainable youth-owned enterprises in Western Kenya. Design/Methodology/Approach: The research adapted a pragmatic approach and descriptive survey design based on the framed financial intermediation theory. It focused on chairpersons or owners of 443 registered youth-owned enterprises within Kakamega, Vihiga, Busia, and Bungoma counties and used Taro Yamane’s proportional sampling formula to arrive at 210 respondents. Both structured and semi-structured questionnaires were used to collect primary data, while financial data was obtained from secondary data sheets. Data analysis was done using SPSS (version 23) with descriptive and inferential statistics, and tables were used to present the results. Findings: The results of linear regression analysis revealed that financial intermediation (β = 0. 629) had a positive and significant (P≤0.001) relationship with sustainability. Implications/Originality/Value: Findings reveal that financial intermediation exerts a considerable influence on the survival of start-ups and businesses owned and operated by youth. This exploration appropriates financing policies, partnerships, financial training, risk management, planning services, networking, and capacities for enhancing sustainability.

The impact of startup subsidies on survival, growth, and stakeholder value

ABSTRACT Although the effects of subsidies on the survival, financial performance, and behavioral changes of startups have been extensively studied, their influence on economic value creation and distribution to stakeholders remains underexplored. To address this gap and mitigate publication bias, we examined the entire number of subsidies received by all Spanish startups at founding (51,495) over a decade, analyzing their outcomes 5 years after inception. We employed statistical matching methods controlling for the startups’ founding conditions. The study revealed that subsidies have a positive impact on startups’ growth and provide a significantly higher likelihood of survival; however, no significant effect on profitability was observed. Receiving a subsidy should be considered alongside other factors in explanatory models of business survival. Subsidies are associated with increased economic value creation and distribution to employees but not to the government through taxes. These findings underscore the importance of understanding the long-term consequences of subsidies on stakeholders.

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.

Elevating service startup survival through strategic service quality

PurposeThe purpose of this paper is to unravel the specific service quality dimensions that significantly influence startup survival, providing actionable insights for service managers and entrepreneurs.Design/methodology/approachEmpirical data were collected from 372 service startups over a period of seven years. The Cox proportional hazard model was used to analyze the data.FindingsThe results indicate that the tangible dimension of service quality emerges as the most critical determinant of startup survival. Additionally, the reliability and responsiveness of the service also significantly affect startup survival. Furthermore, the assurance and empathy dimensions have a positive, albeit modest, influence on the survival prospects of service startups.Research limitations/implicationsThis study contributes to the service literature by investigating the relative importance of each dimension of service quality in relation to the survival of service startups.Practical implicationsThe empirical findings empower service startups to make informed decisions, allocate resources judiciously and prioritize aspects of service quality that have a significant impact on their survival and success.Social implicationsThe social implications indicate the significance of service quality dimensions not only for the success of service startups but also for the overall well-being of customers, local economies and the competitive landscape of the service sector.Originality/valueThis study contributes to service science by uniquely highlighting the critical role of tangibles in startup survival, challenging conventional beliefs about the primacy of service reliability.

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.

Will My Start-up Survive? The Effect of Entrepreneurs’ Manipulative Narcissism and Cultural Factors on Start-ups’ Survival

Start-ups in countries increase people’s well-being and help solve social and environmental issues. However, these firms need to grow and survive to produce these advantages. Entrepreneurs sometimes underestimate the difficulty of creating and running start-ups, even if their personality traits can help or harm them in managing start-ups. This article aims to explore the impact of entrepreneurs’ manipulative narcissism on start-ups’ survival and whether the impact of some cultural factors (i.e., uncertainty avoidance and indulgence) can moderate the relationship between entrepreneurs’ manipulative narcissism and the survival of start-ups. The article analyses 343 start-up entrepreneurs located in Italy, France, China, the United States and Denmark using a stepwise ordinary least squares method. Results show that entrepreneurs’ manipulative narcissism negatively affects start-ups’ survival and that uncertainty avoidance acts as a moderator in the above relationship. The article makes important theoretical contributions to the literature on entrepreneurship and cultural dimensions, highlighting even practical contributions for entrepreneurs and policymakers.

Productivity of innovation: the effect of innovativeness on start-up survival

AbstractThis paper provides arguments supporting the association between different measures of innovativeness (i.e., innovation capacity and effectiveness) and the survival of start-ups. Analysing a sample of 9171 innovative Italian start-ups, using Accelerated Failure Time models, we find two main results. First, patents and software licenses seem to strongly predict survival. Second, different measures of innovativeness complement each other: when Research and Development (R&D) expenditures pair with the ownership of patents/software and a skilled workforce, the overall effect on start-up survival gets stronger. It follows that innovativeness, in terms of high skills able to optimize R&D spending, is crucial for the survival of start-ups. Our findings should support policy-making for innovative capability development and “productivity of innovation”, and contribute to improving start-ups’ credit access and reduce their financial constraints.

Assessing the role of spatial externalities in the survival of Italian innovative startups

The paper provides novel empirical evidence about the effects of spatial externalities on the survival of innovative startups in Italy. Using geocoded firm‐level data, we build micro‐geographic measures of specialization and diversity that are robust to the modifiable areal unit problem. Estimates of spatial externalities are obtained through survival regression models that assess the relationship between these measures and firms' survival time. The main findings are that the nature and strength of agglomeration externalities depend on the firm's life cycle. In particular, an interesting stylized fact can be deduced: these kinds of external economies have a negative effect on innovative startups' survival at the beginning of their activity, which then reverses to be positive when innovative startups reach a certain maturity.

Navigating the valley of death: Open innovation strategies for start-up survival

Navigating the valley of death: Open innovation strategies for start-up survival

Leadership Skills in Startups: A Quantitative Study on the Requirement Profile

Startups are young companies designed to grow quickly. In a highly competitive environment, leadership is a prerequisite for startup survival and an investment criterion for venture capitalists. Although entrepreneurial leadership is considered to be distinct, there is little empirical evidence on the leadership requirements faced by founders and Chief Executive Officers in startups. Against this background, an online survey was conducted on the relevance of leadership tasks and skills. 188 leaders in German startups reported on their understanding of leadership and rated 18 skills on the Occupational Information Network (O*NET) scales. The data show that startup leaders prioritize vision, strategy, and decision making over human resources and team development. The need for strategic, interpersonal, and cognitive skills is consistently perceived as high. Requirements for business skills are moderate and vary widely. The results contribute to a leadership skills model for entrepreneurs and provide implications for entrepreneurship education and training.

ONLINE CROWDFUNDING PROJECTS AFTER THE PANDEMIC: ENTREPRENEURIAL ABILITIES AND INSTITUTIONAL DYNAMICS

This study examines what institutional conditions, entrepreneurial abilities and industry-specific factors contributed to the survival of online crowdfunding projects after the Covid pandemic. Based on the dynamic capability theory, we argue that government financial support alone cannot close the gap between market supply and demand after an exogenous shock. An institutional environment that promotes a transparent and efficient information sharing and resources allocation system is equally important for the survival of startups. Using a sample of 924 Kickstarter projects between 2017 and 2018, we found that startups in countries with high market dynamics and low entry barriers had a higher probability to survive the exogenous shock after controlling for entrepreneurial experience, social capital, and industry-specific factors. The findings support a free market approach to promote early-stage entrepreneurship.

Convex Least Angle Regression Based LASSO Feature Selection and Swish Activation Function Model for Startup Survival Rate

Abstract A startup is a recently established business venture led by entrepreneurs, to create and offer new products or services. The discovery of promising startups is a challenging task for creditors, policymakers, and investors. Therefore, the startup survival rate prediction is required to be developed for the success/failure of startup companies. In this paper, the feature selection using the Convex Least Angle Regression Least Absolute Shrinkage and Selection Operator (CLAR-LASSO) is proposed to improve the classification of startup survival rate prediction. The Swish Activation Function based Long Short-Term Memory (SAFLSTM) is developed for classifying the survival rate of startups. Further, the Local Interpretable Model-agnostic Explanations (LIME) model interprets the predicted classification to the user. Existing research such as Hyper Parameter Tuning (HPT)-Logistic regression, HPT-Support Vector Machine (SVM), HPT-XGBoost, and SAFLSTM are used to compare the CLAR-LASSO. The accuracy of the CLAR-LASSO is 95.67% which is high when compared to the HPT-Logistic regression, HPT-SVM, HPT-XGBoost, and SAFLSTM.

Investigating the factors fostering early-stage digital start-up survival during gestation in Nigeria market

The challenge of failure is a well-known issue for many founders of digital start-ups during market entry. Unfortunately, sub-Saharan Africa has experienced a particularly high rate of failure for digital start-ups during early-stage development. Between 2010 and 2018, an average of 54.20% of digital start-ups failed on the continent. Globally, the survival rate during early-stage development is only around 10% to 20%, which means that roughly 80% of digital start-ups fail during market entry. To address this issue, it's critical to investigate the factors that contribute to the few successes, especially in sub-Saharan Africa. This study focuses on the behaviour of Nigerian founders whose digital start-ups survived during market entry. The goal is to explore how these founders overcame the various complexities and uncertainties that come with entrepreneurial activities in the Nigerian market. The researcher conducted a qualitative case study research, using enactment theory and effectuation theory to investigate the underlying factors that drive the actions and practices of founders to the early-stage survival of digital start-ups in Nigeria.

Self-efficacy and entrepreneurial performance of start-ups

AbstractSelf-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1,405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growth-oriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.

A systematic literature review of startup survival and future research agenda

PurposeThis paper aims to provide a brief review of the work on startup survival and a conceptual framework of factors influencing a startup firm’s survival. In addition, it lists significant gaps and recommends avenues for future research.Design/methodology/approachThis paper conducted a systematic literature review of peer-reviewed journal articles indexed in Scopus, Web of Science and EBSCO databases using Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. A total of 140 articles published in 72 journals between 1993 and 2021 were considered for the review.FindingsThe comprehensive review revealed that most of the studies have applied a single theoretical lens and have taken place in advanced economies, with a narrow focus on emerging economies. Empirical research has prominently applied regression-based models to analyse the relationship between the antecedents and the outcomes. Internal resources such as human capital, financial capital and physical capital and non-financial performance measures such as survival, growth and employment are the studies’ prominently used antecedents and outcome variables. However, a limited number of studies have used mechanisms of mediation and moderation.Originality/valueDespite the substantial scientific and practical discussion on startup survival, to the best of the authors’ knowledge, no comprehensive review has been undertaken to date, which provides a systematic and comprehensive compilation of the knowledge on the topic. This study aims to develop a unique landscape of scientific advancement by methodically reviewing, categorising and synthesising the current body of knowledge on the topic.

Yeni Kurulan Girişimlerin Risk Faktörleri: Bir Değerlendirme

Start-ups are considered as the way to ensure high added value and competitiveness in economies around the world. While investments in start-ups and government incentives tend to increase, evaluation of start-ups risks is an important issue not only for increasing the return on the investment but also for the efficient use of resources. This study examines the specific risks of 23 start-ups operating in various sectors in Türkiye. Employing multiple case method, the start-ups’ risk factors have been analyzed under four major dimensions (organization and human capital; technology and product; financials; marketing and implementation). Factors affecting the risk of start-ups have been assessed in depth according to their expected impact on funders’ decisions. Findings reveal that issues like key personnel dependence and process efficiency must be carefully assessed as they have a critical role in the survival of start-ups. Due to lack of financial resources and the length of time needed to reach a positive cash flow, the start-ups’ focus can be frequently shifted from their core operations to temporary income generating activities, which also increases the risk. Start-ups are set up subsequently to successfully completed R&D projects, therefore their founders mostly have an engineering background. However, although high R&D potential can be considered as having a risk decreasing effect, it is still their ability to efficiently manage financial resources and to adopt an appropriate marketing strategy to commercialize their products in order to generate cash flows and to attain a stable growth that actually determines their risk levels.

A note on the effects of start-up competitions: experience from the Czech Business Plan Contest “Idea of the Year”

The study contributes to the scholarly discussion on the effects of business plan competitions by assessing the survival and performance of the entrepreneurial teams participating in the Czech Business Plan Contest “Idea of the Year” during the years 2010–2015. The implemented research design followed up with the finalists, receiving financial and non-financial rewards 5 years after participating in the contest. The implemented scientific methods include mainly survival analysis and applied statistical techniques, such as cross-tabulations, tests of association, t-tests and correlation analysis. The obtained results allowed us to empirically support a hypothesis assuming that participation in the business plan contest positively relates to new venture creation, start-up survival, and performance. The study provides a series of recommendations for the contest’s organizers, especially in terms of evaluation and monitoring and encouraging the projects’ diversity. The added value for the international scholarship is that the article utilizes a complex theoretical framework combining various types of entrepreneurial capital that may be well used in future studies aiming to assess the impacts of start-up competitions.

Service design for solutions to the United Nations Sustainable Development Goals

While large organisations use technology and innovation to automate processes that reduce employment, startup companies can create employment. While there is little data about survival rates and reasons for failure, a lack of process and decisions based on assertion and assumption may be important factors may be important factors. Only a small number of startups survive for more than twelve months and so their potential for social, economic and environmental impact is limited. To increase the rate of startup survival and so increase associated employment, as well as other positive impacts, this paper describes a systemic process for startups to use to assess their progress, in which decision quality is based on evidence at frequent check points. To do this a confidence score is assigned to the evidence and a vector created through the decision check points to indicate the rate of value creation with a trend for defined objectives. Based on this evidence, progress can be assessed objectively.

One-way ticket from unemployment to entrepreneurship? Evaluation of allowance for self-employment in least developed regions

Abstract Entrepreneurship support for the unemployed is one of the most common entrepreneurial policy tools for small start-ups. Usually, this tool is aimed at simultaneously promoting entrepreneurship as well as reducing unemployment. The aim of this paper is to examine in detail the effects of such an instrument in one of the least developed regions of the European Union (EU). At the same time, however, this region has been very effective in reducing the unemployment rate at the time of the research. The paper focuses, in particular, on entrepreneurship survival after support and compares it with maintenance of employment, in general. Our results, based on probit and bivariate probit regression, suggest that gender, age, economic development of the region and the amount of support are among the most important factors affecting the survival of start-ups after support. The differences between more developed and less-developed sub-regions are particularly pronounced for certain socio-economic groups such as women with tertiary education or married couples. We have also illustrated some aspects that artificially prolong the survival of supported entrepreneurship, such as the use of entrepreneurship as a substitute for dependent or part-time work.