The life expectancy of tech start-ups in India: what attributes impact tech start-ups' failures?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ganesaraman Kalyanasundaram ◽  
Sitaram Ramachandrula ◽  
Bala Subrahmanya Mungila Hillemane
Keyword(s):  
Life Cycle ◽  
Life Expectancy ◽  
Emerging Economy ◽  
Primary Data ◽  
Content Type ◽  
Considerable Uncertainty ◽  
Life Cycle Stages ◽  
Start Up ◽  
Start Ups ◽  
Practical Implications

PurposeEntrepreneurs nurture their ambitions of founding tech start-ups that facilitate significant innovations despite vulnerability and considerable uncertainty by resolutely addressing multiple challenges to avert failures. The paper aims to answer how soon do tech start-ups fail, given their lifecycle comprising multiple stages of formation and what attributes hasten failure of tech start-ups over their lifecycle? These questions have not been answered adequately, particularly in the context of India's emerging economy, where an aspiring start-up ecosystem is striving to flourish at an exceptional rate.Design/methodology/approachThe study addressed two specific objectives: (1) Does life expectancy vary between life-cycle stages? and (2) What attributes impact tech start-ups' failures? Primary data were gathered from 151 cofounders (101 who have experienced failure and 50 who are successful and continuing their operations) from India's 6 leading start-up hubs. The survival analysis techniques were used, including non-parametric Kaplan–Meier estimator, to study the first objective and semi-parametric Cox proportional hazard regression to explore the second objective.FindingsThe survival probability log-rank statistics ascertain that life expectancy is different across the life-cycle stages, namely emergence, stability and growth. The hazard ratios (HRs) throw light on attributes like stage, revenue, conflict with investors, number of current start-ups, cofounder experience, level of confidence (LoC) and educational qualifications as the key attributes that influence start-up life expectancy over its lifecycle.Practical implicationsThe empirical study on tech start-ups' life expectancy has practical implications for entrepreneurs and investors besides guiding the ecosystem's policymakers. First, the study helps entrepreneurs plan for resources and be aware of their start-up journey's potential pitfalls. Second, the study helps investors to establish the engagement framework and plan their future funding strategy. Third, the study helps policymakers to design and establish progressive support mechanisms that can prevent a start-up's failure.Originality/valueFirst and foremost, start-up life expectancy study by life-cycle stages provide detailed insights on start-ups' failures. The theoretical framework defined is replicable, scalable and distinctly measurable for studying the start-up failure phenomenon. The life expectancy of tech start-ups by life-cycle stage is a critical empirical contribution. Next, the attributes impacting start-up life expectancy are identified in the context of an emerging economy.

Exploring the role of business relationships in start-ups’ life cycles

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 519-543
Author(s):  
Chiara Cantù ◽  
Sepe Giorgia ◽  
Alessandra Tzannis
Keyword(s):  
Life Cycle ◽  
Secondary Data ◽  
Life Cycles ◽  
Business Relationships ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Resources ◽  
Start Up ◽  
Start Ups

Purpose Differently from previous works that focused on the entrepreneur and on his ability to manage social relationships, the purpose of this paper is to investigate the role of business relationships in the different stages of the life cycle of a start-up. Design/methodology/approach Since the paper aims to explore startups’ evolutionary phenomenon, it adopts a qualitative abductive methodology, presenting an in-depth study of two innovative Italian start-ups. The research is based on two steps. In the first one, the authors collected secondary data from start-ups’ reports and documents, financial indicators (when available) and processed them to understand their background. In the second one, the authors conducted ten semi-structured interviews, including face-to-face interviews, phone interviews and video conferences. Findings The paper presents a relationship-based life cycle model composed of four different stages, depending on the number and role of relationships developed. Indeed, since the beginning, start-ups adopt a relational approach and their evolution involves the shift from the focus on the entrepreneur to the centrality of a network approach based on interconnected relationships. The entering into a new stage of life cycle depends on relationships, mainly based on connected actors and resources shared and combined. Even if a key role is assumed by technology, the main resource is identified in the knowledge concerning the customer/user’s needs that require marketing competencies, human resources, relational capabilities. Thus, the shift from one stage to the next in the start-up’s life cycle is possible thanks to a parallel shift from a focus on the activities to a focus on those strategic and heterogeneous actors that ensure activities. Originality/value In a traditional perspective, the start-up’s life cycle depends on activities, financial resources and revenues, as stated by previous life cycle models. In a different perspective, as depicted in our analysis, the evolution of a start-up depends on the portfolio of their business relationships. The role of business relationships is hence to facilitate the interconnections within specialized key actors, which allow start-ups to access strategic resources. These resources are essential in order to develop the activities that characterize the specific stage of the life cycle.

Technology business incubators in India: what determines their R&D contributions to the national economy?

2020 ◽  
Vol 12 (4) ◽  
pp. 385-408
Author(s):  
Bala Subrahmanya Mungila Hillemane
Keyword(s):  
National Economy ◽  
Developing Economies ◽  
Selection Process ◽  
New Products ◽  
Patent Application ◽  
Primary Data ◽  
Business Incubators ◽  
Content Type ◽  
Start Ups ◽  
Practical Implications

Purpose The purpose of this study is to explore how do the characteristics of technology business incubators (TBIs), their chief executive officers, selection process and incubation process influence their research and development (R&D) contributions to the national economy. Design/methodology/approach These research questions are probed based on primary data gathered from 65 TBIs located in Bangalore, Chennai and Hyderabad, 3 of the leading start-up hubs of India comprising 9 accelerators, 31 incubators and 25 co-working spaces. Stepwise (backward elimination) regression method has been applied for six regression models for the analysis of research objectives. Findings Incubators more than accelerators and co-working spaces have incurred R&D investments for infrastructure development and hired exclusive R&D personnel. External networks and size of incubators in terms of number of incubatees are decisive for R&D investments and new products/services. TBIs accounted for a negligible share of patents relative to the number of new products/services generated in these TBIs, thereby indicating “low level of novelty/innovativeness” of new products/services. However, both new products/services and patent applications are crucial for revenue generation, implying that the generated new products/services are able to penetrate the market and patent application submission can act as a “signal” to the market. Research limitations/implications The overall research findings portend that there is scope and potential for an increasing R&D contribution to emerge from the TBIs along with their incubated start-ups, to supplement the national R&D efforts in India in the future. The emphasis, of course, has to be more on strengthening the innovation ecosystem through TBIs by means of industry–institute partnerships. Practical implications This study’s practical implications refer to the need to promote TBIs as a means of strengthening regional innovation systems in developing economies. Social implications TBIs can be a means of nurturing tech start-ups for generating employment and income in regional economies. Originality/value This is a first of its kind study with reference to an emerging economy exploring to understand the extent of R&D contributions emerging from TBIs, which have been promoted on an increasing scale across the country as a means of nurturing technology start-ups.

Entrepreneur's profile: a taxonomy of attribu tes and motivations of university students

2008 ◽  
Vol 15 (2) ◽  
pp. 405-418 ◽  
Author(s):  
Mário Raposo ◽  
Arminda do Paço ◽  
João Ferreira
Keyword(s):  
Educational Programme ◽  
Personal Attributes ◽  
Primary Data ◽  
Multivariate Statistical ◽  
Content Type ◽  
Start Up ◽  
Potential Entrepreneur ◽  
Research Findings ◽  
The University ◽  
Start Ups

PurposeThis paper aims to identify the profile of the potential entrepreneur student in what concerns the personal attributes and motivations for start‐ups' creation.Design/methodology/approachA review of literature related to the entrepreneur profile is made in order to justify the importance of the theme. Through some studies it was possible to identify a diversity of works and authors that present some aspects which contribute to the characterisation of entrepreneur individuals. The present research uses primary data obtained by means of a questionnaire, involving a sample of students, which were currently engaged in a graduation course at the University of Beira Interior. The questionnaire was administrated by interviews conducted in the classrooms of the University's faculties. The collected data were submitted to a multivariate statistical analysis.FindingsResearch findings include the existence of a typology of two distinct groups of students, respectively designated by “The accommodated independents” and “The confidents”, according to the most outstanding characteristics related with several attributes and motivations presented by each of them.Practical implicationsThe identification of the entrepreneurs' characteristics and the knowledge of the potential business creator students' profile may be important for the development of an adequate educational programme directed to the entrepreneurship education and start‐up processes.Originality/valueThe paper identifies some important characteristics that are common in entrepreneurs. The findings could be used both to promote entrepreneurship in our education systems and to identify the best practices.

Entrepreneurial ecosystem for tech start-ups in Bangalore: an exploration of structure and gap

2020 ◽  
Vol 27 (7) ◽  
pp. 1167-1185
Author(s):  
Bala Subrahmanya Mungila Hillemane
Keyword(s):  
Gap Analysis ◽  
Primary Data ◽  
Ecosystem Structure ◽  
Entrepreneurial Ecosystem ◽  
Component Level ◽  
Policy Makers ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeBangalore has gained international recognition as a technology start-up hub for its vibrant entrepreneurial ecosystem. Against this backdrop, this paper attempts to explore the structure and gap that exist with respect to the entrepreneurial ecosystem for tech start-ups in Bangalore.Design/methodology/approachA Delphi technique based four stage interaction with the experts/stakeholders belonging to different components of the entrepreneurial ecosystem (as identified from the literature) in the context of Bangalore is conducted, to gather primary data. This enabled us to define the structure of entrepreneurial ecosystem and analyse the gap that exists between an ideal ecosystem feasible in the Indian context and that one that prevailed in Bangalore.FindingsThe prevailing entrepreneurial ecosystem for tech start-ups in Bangalore is significantly different (lower) relative to an ideal ecosystem feasible in the Indian economic environment, as prescribed by the Delphi experts, both at the aggregate level and at an individual component level. The step-wise (backward) logistic regression analysis revealed that Bangalore ecosystem is primarily lacking in terms of one of the Triple Helices, namely, role of education and research institutions, and two of the five indispensable components, namely, market maturity and mentorship.Research limitations/implicationsIt is essential to strengthen and promote the Triple Helix base and the five indispensable components in an entrepreneurial ecosystem, to accelerate the emergence and growth of tech start-ups.Practical implicationsIt brings out the nature of entrepreneurial ecosystem structure and the gap between what can be considered an ideal ecosystem and what prevails in Bangalore currently.Originality/valueThis is a primary data based study, which has value for regional policy makers in strategizing to promote Bangalore ecosystem, and for researchers in undertaking “ecosystem gap analysis”.

Playing the long game

2018 ◽  
Vol 34 (1) ◽  
pp. 10-12
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
Start Up ◽  
Pertinent Information ◽  
Start Ups ◽  
Practical Implications ◽  
Angel Investors

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The pages of glossy business magazines are filled with long articles, short anecdotes, and visualizations of how Company A fosters creativity by allowing play time for employees, and how Company B has installed slides instead of stairs and offers free pizza. Indeed, it will not be long before one wacky start-up decides to put-up the bar and give all employees the rest of the year off to “ideate and channel their inner creativity”. The business magazines love showcasing these kinds of start-ups as people love to read about them – although there never seems to be many follow-ups in just how many of them saw their fifth year of activity after the cash from angel investors was burned through. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Tech start-ups: networking strategies for better performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Youngeun Chu ◽  
Woojin Yoon
Keyword(s):  
Strategic Alliances ◽  
Network Theory ◽  
Basic Assumption ◽  
Content Type ◽  
Life Cycle Stages ◽  
Resource Needs ◽  
Start Up ◽  
Entrepreneurial Strategies ◽  
Start Ups ◽  
The Relationship

Purpose This study aims to explore the relationship between entrepreneurial strategies and the performance of technological start-up companies. Design/methodology/approach Building on the extant literature on network theory, this paper derives the propositions that observe the effect of strategic alliances on the growth of technology-based ventures. Findings This study suggests that the network of a start-up evolves in response to the changing resource needs and resource acquisition challenges of a firm as it moves through the life cycle stages of emergence and early growth. Originality/value The present study challenges the basic assumption that more embeddedness is better by examining which kinds of specific ties are more beneficial than others, and whether these beneficiaries are maintained overtime.

How I became an entrepreneur: an exploratory study of young start-up entrepreneurs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ameesh Ajantha Samalopanan ◽  
Vijayalakshmi Balasubramaniam
Keyword(s):  
Lived Experiences ◽  
Success Factors ◽  
Primary Data ◽  
Content Type ◽  
Enterprise Growth ◽  
Start Up ◽  
Initial Stage ◽  
Developmental Phases ◽  
Rate Of Failure ◽  
Start Ups

PurposeThough extant literature has mapped various stages of start-up enterprise growth, there is limited research on the phases that an entrepreneur traverses before the enterprise is started and established as a venture. The paper attempts to understand the lived experiences of young Indians as they negotiate the entrepreneurial path.Design/methodology/approachQualitative method, where primary data were collected using in-depth interviews of 15 start-up entrepreneurs. These narratives were compared with Bansal's descriptions of entrepreneurs in her book “Connect the dots”. The interview transcripts and the detailed descriptions were analysed for emergent themes.FindingsResults indicated that there are five distinct stages in the development of a start-up entrepreneur; namely – pre-entrepreneurial stage, inflexion point, cocoon period, initial stage, crisis stage and, depending upon the success factors and support received during crisis stage, either a success stage or failure stage.Originality/valueThis is a narrative-based, qualitative approach to understand the lived experiences of young start-up entrepreneurs in India and an attempt to map developmental phases. The fact that India is a fast-growing market for start-ups and the higher rate of failure of start-ups in India makes the study relevant.

scholarly journals Leadership toward creativity in virtual work in a start-up context

2015 ◽  
Vol 27 (6) ◽  
pp. 426-441 ◽  
Author(s):  
Iris Annukka Humala
Keyword(s):  
Virtual Work ◽  
Content Type ◽  
Qualitative Research Study ◽  
Study Approach ◽  
Learning Challenges ◽  
Start Up ◽  
Information And Communication ◽  
Coaching Leadership ◽  
Start Ups ◽  
Practical Implications

Purpose – This paper aims to better understand how to lead toward creativity in virtual work in a start-up context. Design/methodology/approach – The study investigates the participants’ experiences about the learning challenges in leadership toward creativity in virtual work in a start-up company and the meanings attributed to their experiences, and the measures they see to meet those challenges. The data have been gathered on a Finnish partnership start-up company through interviews capturing peoples’ personal perspectives and experiences. This study uses a qualitative research study approach to better understand leadership toward creativity in virtual work in a start-up. Findings – The results underline the importance of co-creative and assertive coaching leadership in a start-up to foster creativity and create new shared value. Key persons’ multiliteracy skills and lobbying are means to manage social and physical distances in virtual work. Practical implications – The study suggests collaborative coaching leadership and assertiveness for start-ups to minimize mistakes in virtual work. Practitioners must unlearn old courses of action to learn to operate in a start-up environment and utilize information and communication technology in a smart way. Originality/value – The paper gives empirical evidence in a start-up context about combining leadership and creativity within the virtual work research.

Capital structure dynamics among SMEs: Swedish empirical evidence

2016 ◽  
Vol 17 (2) ◽  
pp. 245-260 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Equity Capital ◽  
Firm Level ◽  
Content Type ◽  
Life Cycle Stages ◽  
Start Up ◽  
Level Data ◽  
Industry Sectors ◽  
Firm Owners

Purpose This paper aims to empirically investigate the existence of dynamic capital structure among small and medium-sized enterprises (SMEs) across their life cycle stages. Design/methodology/approach The analysis examined a sample of 15,952 SMEs across five industry sectors for the 2009-2012 period. Several techniques, including ANOVA and multivariate regressions, were used to analyse firm-level data. Findings The findings suggest that start-up SMEs, on average, rely on equity capital, and that the level of equity capital increases as firms age. The short-term debt level is particularly high in early life cycle stages, decreasing later on. The long-term debt ratio is positively related to firm age, although it is low in all life cycle stages investigated. Practical implications The findings may help several parties, including firm owners, to better understand how capital structure can be related to various life cycle stages. Such an understanding may help these actors use financial resources efficiently. Originality/value To the authors’ best knowledge, little research has addressed whether there are any differences in financing patterns over the firm life cycle.

The development dynamics of business networks

2018 ◽  
Vol 13 (1) ◽  
pp. 27-44 ◽  
Author(s):  
Douglas Wegner ◽  
Susana Costa e Silva ◽  
Greice De Rossi
Keyword(s):  
Life Cycle ◽  
Development Process ◽  
Public Support ◽  
Business Networks ◽  
Business Network ◽  
Content Type ◽  
Life Cycle Stages ◽  
Nuanced Understanding ◽  
Practical Implications ◽  
Current Stage

Purpose The purpose of this paper is to compare the development dynamics of two business networks initially created to promote the internationalization of its members. Wines of Brasil – a Brazilian wineries network – was established in 2002 and remains active, while Vitrocristal (VtC) – a Portuguese network of glass producers – was established in 1994 and is already closed. Design/methodology/approach Data were collected from 14 interviews, with network managers and representatives of companies with different sizes and participation times. Information obtained was compared with the life cycle model of Wegner et al. (2015) and enabled the authors to understand the dynamic development of each network and its current stage in the life cycle. Findings The results allowed the authors to describe the development pattern of both business networks, showing that the Brazilian network is in the consolidation stage while the Portuguese one finished its activities in 2007 after a period of financial constraints due to the end of governmental support. Practical implications The comparison of the two cases shows that the experience of the Portuguese business network may be useful for networks in emerging markets, as it displays several difficulties that the management of such networks may face during their life cycle. Originality/value This study provides a more comprehensive and nuanced understanding of the dynamics of change in business networks. The cases confirm the life cycle stages proposed by Wegner et al. (2015) and shed more light on the development process of business networks, by describing how exogenous variables such as public support may affect cooperation.

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