Reasons of the startups failure. 

Reasons of the startups failure. 

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The role of a relatively small cadre of high-tech startup firms in driving innovation and economic growth has been well known and amply celebrated in recent history. At the same time, it is well recognized that, while the overall contribution of startups is crucial, the high-risk and high-reward strategy followed by these startups leads to signific...

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... results of the analysis conducted by means of the SHELL methodology are shown in the Figure 4, which highlights that the failure of a startup is rarely the consequence of only one reason, instead different factors influence its failure, leading an excess compared to the total 100%. The figure shows how the two main reasons for failure are the absent or the wrong business model and the lack of business development, respectively with 35% and 28% occurrences. ...

Citations

... While this type of internal tension has always been identifiable, the noted rise of 'startup culture' (Koskinen 2020) has further reinforced the need for an organisation to function in a wholly integrated manner. Recent examples Introduction 3 of business failures that were bursting with vision but had no operations (Cantamessa et al. 2018) are obvious early casualties in terms of longevity. Startups that are not able to develop a strategic direction are generally short-term propositions or invariably end up suffering from the negative influences of the founder effect (Fleising 2002). ...
... An important area of study in the eld of entrepreneurship is the factors that in uence the success or failure of new companies (Cantamessa, Gatteschi, Perboli, & Rosano, 2018). Startup rms are usually studied from nancial performance and using quantitative methods in analysis. ...
... From a handsome monthly salary to no salary has added considerable stress on these folks. 10. The most important and signi cant aspect that was extracted from the interviews was that the decision learning feedback loop for an entrepreneur was either missing or faulty. ...
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Entrepreneurship is usually considered as a chaotic process paved with uncertainties. Without a method to the madness, entrepreneurship can become detrimental to the well-being of the entrepreneur. Early stage of a start-up refers to all important activities that help identify a potential business from an idea. This discovery process is characterised by stress and uncertainty which makes data driven decision making particularly challenging. Unlike mature phases (post launch and product-market fit phase) where data is available in plenty, early phase decision making depends on either limited data or generating one’s own data. Uncertainty gives rise to biases in the decision making. The two most negatively impacting biases are confirmation bias and self-serving bias. In a combination, they affect the way an entrepreneur in the early phase interprets both data and the consequences of his/her decision. Through a qualitative interview-based study involving 30 entrepreneurs in the early phase and 10 entrepreneurs in the mature stage, this study focuses on recognising the presence of these biases and proposes a habit-based process for grooming early-stage entrepreneurs. The scientific principles underlying the proposed framework have been detailed out and pragmatic solutions for improving early phase decision making have been derived.
... However, there are so many startups that fail due to several factors including market needs, internal conflicts, weak teamwork and inefficient funding. For example, the space infrastructure for activities is relatively expensive, and the existing infrastructure is inadequate, especially the appropriate functions with the activity needs and characteristics of creative startups (Cantamessa et al., 2018). For that we need a space that can accommodate and develop the creativity of creative startups that is comfortable, tailored to the needs and supports a collaborative atmosphere. ...
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The rise of information and technology requires all businesses and nonprofits to digitize. The co-working facility in Bandung's Batununggal District does the same. Batununggal co-working facility intends to promote locals' creativity and host start-up actors. This community service targets MSME actors and inhabitants in Bandung's Batununggal subdistrict, those who have established a business and those who will establish a business. Workshops on digital technologies, digital ads, and AR-based social media content offer business actors insight and competence. Participants also received training on enterprise resource planning to help manage and integrate corporate operations in Batununggal, Bandung. This series of community service activities increased participants' insight into digital-based promotional strategies and the use of digital tools and digital ads for their products; increased participants' insight and competence in managing and integrating business using the ERP system; trained participants to use AR technology on social media, especially Instagram, to promote their products.
... To prevent success bias, we included perspectives of startups that stopped their activity already. The questionnaire of this survey has been constructed based on existing literature on successful and failed startups (Cantamessa et al., 2018;Chhatwani et al., 2022;Marom & Lussier, 2014;Pisoni et al., 2020;Rizos et al., 2016;Skawińska & Zalewski, 2020), on earlier research on circular companies in Flanders (Borms et al., 2023), and on the input of partner organizations that were willing to reach out to startups within their network. Draft versions were iteratively tested by colleagues and partner organizations in the period July-September 2021. ...
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An increasing number of studies illustrate and estimate the potential of the circular economy to create new jobs, most particularly for vulnerable groups at the labor market. This creates collaborating opportunities for Work Integration Social Enterprises (WISEs) and circular economy ventures. Since a shift to a circular economy requires new visions and strategies, startups are considered as powerful engines for the innovation processes needed to support a circular transition. Nevertheless, academic literature at the crossroads of the circular economy, work integration of target groups, and startups remains quasi non-existent. In this paper we present results from survey-data of startups with varying implementation levels of circular strategies, and assess their willingness to cooperate with WISEs, or to engage in other forms of target group employment. We find a strong positive relationship between the implementation of circular strategies and work integration ambitions among startups. Circular startups who need skills on production, transportation, and logistics seek collaboration with WISEs for both inner (repair and redesign) and outer circle (recycling) strategies. Our findings suggest that the circular social economy faces specific barriers that need tailor-made enabling policies. We recommend WISEs to explicitly assess reskilling and upskilling opportunities while embracing the circular economy as a future-proof economic activity.
... This model has been iteratively tested in various parts of the world (Lussier, 1995;Marom & Lussier, 2014). Other research adapts methodologies to analyses airline crashes to a framework to analyze post-mortem reports of startups (Cantamessa et al., 2018). In a systematic literature review of 74 papers focusing on new ventures' failure, four main categories of causes for failure were identified, being resources (human and financial capital), strategic/managerial decisions, product-related aspects, and contextual/environmental-related issues (Pisoni et al., 2020). ...
... The questionnaire of this survey has been constructed based on existing literature on successful and failed startups (Cantamessa et al., 2018;Chhatwani et al., 2022;Marom & Lussier, 2014;Pisoni et al., 2020;Rizos et al., 2016;Skawińska & Zalewski, 2020), on recent research on circular companies in Flanders (Borms et al., 2023), and on the input of partner organizations that were willing to reach out to startups within their network. Draft versions were iteratively tested in the period July-September 2021. ...
... Regarding barriers to implement circular strategies, we based our questions on an extensive EU-wide research among businesses, governments, academia and NGOs (Kirchherr et al., 2018), and on a paper that adapted a model to analyze aircraft crashes into a framework to analyze post-mortem reports of startups (Cantamessa et al., 2018). The list of potential enablers to implement circular strategies is based on a participatory study that included policy and industry perspectives to construct a working agenda for a circular manufacturing industry in Flanders (Versluys et al., 2021). ...
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Circular economy practices contribute to achieve sustainability and to alleviate the consequences of value chain disruptions and surging prices of energy and raw materials. While startups are increasingly recognized as a powerful engine for innovation processes needed to support this transition, academic literature on the implementation of circular strategies among startups remains scarce. In this paper, we report findings from the first academic survey on circular startups (N = 165) that allows for multivariate statistical analyses, considering both personal and company characteristics, and perspectives of the entrepreneurs involved. This survey includes startups with varying degrees of implementation levels of a set of 10 circular strategies at different startup lifecycle stages. Our results suggest that younger startup entrepreneurs tend to focus on inner circle strategies, while older startup entrepreneurs rather engage in outer circle strategies or no circular strategies at all. Female startup entrepreneurs are found to be less inclined to combine multiple circular strategies, and business-to-business and business-to-government market segments tend to be frontrunners for circular business models. Circular startups mostly acknowledge sustainability and circularity as a comparative advantage, and startup entrepreneurs with a migrant background seem to be more optimistic to start a profitable circular business. Our results suggest that there is no such thing as 'the' circular economy company, so we recommend policy makers to develop tailor-made solutions to support startups implementing different circular strategies.
... However, many startups, do not survive (Cantamessa et al., 2018), as they face organizational and managerial challenges (Davila et al., 2015). ...
... This finding highlights the need for entrepreneurial companies to adopt an MCS package (Akroyd et al., 2019) and shows that technology-based parks and incubator environments may have helped the management control adoption process (Davila, 2019). It also suggests that MCS packages may represent a way for startups to face early-stage impairments and survive in the market (Davila et al., 2015;Cantamessa et al., 2018). ...
... Startups can potentially shape our economic future (Walsh and Cunningham, 2016); however, many of them fail to do so and face bankruptcy in their early stages (Cantamessa et al., 2018). Therefore, understanding the dimensions of EO and MCS package elements is useful for policymakers so as to help startup firms manage the context they face, promote better performance, and consequently, achieve successful outcomes. ...
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Purpose This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance. Design/methodology/approach The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package. Research limitations/implications The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance. Practical implications The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance. Originality/value Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.
... Entrepreneurship is a comprehensive and multidimensional concept (Rusu and Roman, 2017) that has recently been considered a trend with increased worldwide visibility (Cantamessa et al., 2018) addressing economic growth. The association between economic growth and the continuous formation and proliferation of new entrepreneurship was recognised by the global entrepreneurship monitor (GEM) 2020 report, in which the United Arab Emirates (UAE) has the best entrepreneurial framework conditions resulting in a growing number of 24,716 new businesses registered alone in 2018 and a new business density of over three (GEM, 2022). ...
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Public policies increasingly focus on the development of entrepreneurial ecosystems to facilitate growth. This comparative multiply case study explores the perceptions of 16 subject-matter experts about how public policies shape entrepreneurial ecosystems in the United Arab Emirates and Lebanon using Scott's institutional theory as conceptual framework. The findings suggest that public policies seem to be especially important during the creation of an entrepreneurial ecosystem. Public policies shape entrepreneurial activities directly as well as indirectly, whereas their regulative and normative components have a stronger short-term effect and their cultural-cognitive component has mainly a long-term effect. These findings have implications for public policymakers, entrepreneurs, and other stakeholders on the development of entrepreneurial ecosystems.
... For instance, the five-year survival rate of new firms in Canada varies between 51% and 63% (Industry Canada, 2018). Though a venture may not survive because it is acquired by a larger firm, Cantamessa et al. (2018) found that failures within a sample of 214 start-ups mainly had to do with their business model and the way they were managed. Other factors included their innovation, customers, and ecosystem (investments, public policies, regulations, or competition). ...
Chapter
This chapter explains why increasing responsibility in the health innovation industry cannot rely solely on individual innovators’ shoulders. For Responsible Innovation in Health (RIH) to flourish, responsible innovators must be able to find and work with multiple allies. We thus review the drivers and obstacles that are found in the health and social care sector as well as those found in the innovation policy sector. By emphasizing, on the one hand, how academic health centers can develop an RIH-oriented role, and, on the other hand, the way social finance and impact investors can leverage RIH entrepreneurial projects, it underscores the importance of “doing” responsibility collectively.
... As shown by the results of research, in the first phase of activity, statistically around the world, over 60% of them fail [1], [2]. Therefore, numerous studies are conducted to identify the determinants of success in startups [3]. A high rate of startup bankruptcies causes a large waste of resources and capital, therefore identifying entities with greater chances of success becomes a necessity from the point of view of maximising the economic development of a given region or country. ...
... As shown by the results of research, in the first phase of activity, statistically around the world, over 60% of them fail [1], [2]. Therefore, numerous studies are conducted to identify the determinants of success in startups [3]. A high rate of startup bankruptcies causes a large waste of resources and capital, therefore identifying entities with greater chances of success becomes a necessity from the point of view of maximising the economic development of a given region or country. ...