scholarly journals Start-Up Nation

2017 ◽  
Vol 31 (3) ◽  
pp. 350-388 ◽  
Author(s):  
Steven Fraiberg

This study focuses on start-up entrepreneurs on the move—in coordination with an array of other actors—as they weave and are woven into transnational networks. Central to this study is a shift from activity to mobility systems. Building on technical communication scholarship, the frame integrates actor networks and activity theory knotworks. Disrupting workplace and national container models (methodological nationalism), the analysis is grounded in a study of Israeli start-up entrepreneurs. Dubbed the Start-Up Nation, Israel contains more start-ups per capita than any other country in the world, with its high-tech industry made up of a dense ecosystem of conferences, accelerators, meetups, social media, and coworking spaces. Tracing actants’ trajectories across this social field, the author argues for a conceptualization of entrepreneurs as knotworkers who mobilize genres, modes, languages, and spaces.

Significance This was on top of a record 3.2 billion dollars of new investment capital raised by such companies in the first half of the year. Start-up fundraising, a key metric of tech-industry health, has been growing steadily since 2012. However, that growth in part reflects worldwide trends toward higher valuations for tech companies; a growing preference by start-ups to delay public listings by funding growth through private capital and other investors (as well as traditional venture capital funds); and Israeli strengths in such growing sectors as cybersecurity, artificial intelligence and automobile-related technology. Impacts An industry contraction could help alleviate a shortage of skilled personnel, although a severe downturn would risk ‘brain drain’. Low technology-sector growth would deprive Israel of an important source of high-paid employment. Foreign investment, export earnings and tax revenue would all be harmed by an industry slowdown. Developing technology relations with emerging Asian powers could be weakened if the industry fails to grow and maintain innovation.


Author(s):  
Dan Breznitz

Across the world, cities and regions have wasted trillions of dollars blindly copying the Silicon Valley model of growth creation. We have lived with this system for decades, and the result is clear: a small number of regions and cities are at the top of the high-tech industry, but many more are fighting a losing battle to retain economic dynamism. But, as this books details, there are other models for innovation-based growth that don’t rely on a flourishing high-tech industry. Breznitz argues that the purveyors of the dominant ideas on innovation have a feeble understanding of the big picture on global production and innovation. They conflate innovation with invention and suffer from techno-fetishism. In their devotion to start-ups, they refuse to admit that the real obstacle to growth for most cities is the overwhelming power of the real hubs, which siphon up vast amounts of talent and money. Communities waste time, money, and energy pursuing this road to nowhere. Instead, Breznitz proposes that communities focus on where they fit within the four stages in the global production process. Success lies in understanding the changed structure of the global system of production and then using those insights to enable communities to recognize their own advantages, which in turn allows to them to foster surprising forms of specialized innovation. All localities have certain advantages relative to at least one stage of the global production process, and the trick is in recognizing it.


Author(s):  
Rewindy Astari Surbakti ◽  
Doddy Yuono

The 21st century is known as the industrial revolution 4.0 which changes the economy among people who grow together with modernity and technology systems. It proves that the development of human thinking on creativity will greatly affect the development of the creative economy, but this has made the market begin to be abandoned by new generations and switch to e-commerce systems. The existence of an epidemic that has begun to spread in people's lives is also one of the factors that have changed the world economy and made the market begin to be abandoned. Changes in the world economy will require revitalization so that this is used as a foundation in the formation of the Screen Market integrated with the digital system to polarize the economy. The new generation is the key to the development and balance of the economy in technology, this is in line with the entrepreneurial nature and character of the new generation, which makes them prefer to develop as start ups. The revitalization of the economic center will become a forum for interaction with the surrounding environment so that the characteristics of the formation of interaction space are the basis and the beginning of the screen market. The screen market is located on Jl Arjuna Utara which is surrounded by malls, offices, universities, making the type of retail being marketed a creative sub-sector, namely culinary with local products, fashion retail, and also craft retail managed by start ups so it is hoped that the screen market can accommodate interaction and creatively combined with digital developments. Keywords: Economy; Market; New Generation; Technology. Abstrak Abad ke-21 dikenal dengan terjadinya revolusi industri 4.0 yang mengubah  perekonomian  di kalangan masyarakat yang bertumbuh bersama dengan sistem modernitas dan juga teknologi. Membuktikan bahwa perkembangan pemikiran manusia terhadap kreativitas akan sangat memengaruhi perkembangan ekonomi kreatif tetapi hal ini menjadikan pasar mulai ditinggalkan oleh generasi baru dan beralih pada sistem e-commerce. Adanya wabah yang mulai merambat dikehidupan masyarakat juga menjadi salah satu faktor yang merubah perekonomian dunia dan menjadikan pasar mulai ditinggalkan. Perubahan perekonomian dunia ini akan membutuhkan revitalisasi sehingga hal ini dijadikan sebagai landasan pijakan dalam pembentukan Pasar Layar yang dipadukan dengan sistem dari digital sebagai polarisasi perekonomian. Generasi baru merupakan kunci dari perkembangan dan keseimbangan perekonomian dalam teknologi, hal ini sejalan dengan sifat dan watak entrepreneur yang dimiliki oleh generasi baru sehingga menjadikan mereka lebih memilih berkembang sebagai start up. Revitalisasi pusat perekonomian ini akan menjadi wadah interaksi dengan lingkungan sekitar sehingga adanya karakteristik pembentukan ruang interaksi sebagai dasar dan awal dalam pasar layar. Pasar layar berada di Jl. Arjuna Utara yang dikelilingi oleh mall, kantor, universitas menjadikan jenis retail yang dipasarkan merupakan subsektor kreatif yaitu kuliner dengan produk lokal, retail fashion dan juga retail kriya yang dikelola start up sehingga diharapkan Pasar Layar mampu menampung antara interaksi dan kreatif  yang dipadukan dengan perkembangan digital.


2020 ◽  
Vol 1 (2) ◽  
pp. 1-25
Author(s):  
Ajay Kumar ◽  
Bhim Jyoti

Purpose: This study examines the relationship of socio-economic characteristics of start-ups with their size in Gujarat, India. It also assesses the determinants affecting the annual sale of start-ups. Methods: It includes primary information based on a survey of 120 founders of start-ups. Linear and semi-log linear regression models have been applied to assess the determinants of start-ups. Probit regression models have been considered to assess the factors affecting the annual sale of the start-ups. Results: Stage of start-up, the participation of founders in conferences, educational qualification, and new products launched by start-ups, professional connections of founders, source of funding, and support from incubator/accelerator/supporting organizations are found crucial determinants of start-up size in Gujarat. The annual sales of the start-ups are positively associated with stage of start-up, support from a mentor, team members, founder's academic qualification, and collaboration with national or international organizations, unskilled workers. Implications: Technology transfer and commercialization, development of new products, government regulations, the requirement of costumers, free rights for entrepreneurs, appropriate financial support for new entrepreneurs, transparency and clarity in government policies, the establishment of high-tech start-ups, and development of digital infrastructure, increase in R&D spending in research academia, and association of research institutions with entrepreneurs would be conducive to create an appropriate start-ups ecosystem and to reduce regional development disparities across Indian states. Subsequently, it would be helpful to increase sustainable development in India.  Originality: This study has used primary information of 120 founders of start-ups to assess the determinants, and the factors affecting annual sales of start-ups using the regression model in, Gujrat, India. Thus, it has an empirical contribution to the body of knowledge. Limitations: This study could not provide rational justifications on most factors that show an insignificant impact on start-ups due to the small sample size. Further research, therefore, may be considered to identify the association of start-up size with the variables using a large sample size in India.  


2006 ◽  
Vol 20 (2) ◽  
pp. 111-121
Author(s):  
Mary A. Keating ◽  
Mariabrisa Olivares

Focusing on Irish high-tech start-ups, this paper reports on the results of an empirical study of organization building by entrepreneurial firms, specifically in relation to human resource practices. The research findings are benchmarked with findings from SPEC, the Stanford Project of Emerging Companies (Baron and Hannan, 2002). Human resources management and entrepreneurial research have rarely been combined in the literature and there is no distinct body of work in the area of human resource management in entrepreneurial firms.


2009 ◽  
Vol 84 (1) ◽  
pp. 27-51 ◽  
Author(s):  
Gavin Cassar

ABSTRACT: Using a representative sample of entrepreneurs who are in the process of starting a business, this study investigates the determinants of the preparation of financial statements and projections in start-up ventures. Consistent with predictions from information economics and contracting, I find that the use of outside funding, level of competition, and venture scale are positively associated with the intended frequency of financial statement preparation. However, comparing the economic significance of alternative influences suggests that the benefit of reducing competitive and fundamental uncertainty is more influential in explaining variations in intentions to prepare financial statements. Further, I find the determinants of preparation frequency vary among different financial statements; for instance, cash statements are more important for start-ups with products in earlier stages of development and with greater competition. In contrast to financial statements, the preparation of projections such as formal financial projections and regular sales forecasts by start-ups is positively associated with the importance of intangible investments such as patents, research and development, and with start-ups in high-tech industries.


2005 ◽  
Vol 08 (02) ◽  
pp. 235-250
Author(s):  
Chiung-Ju Liang ◽  
Ming-Li Yao ◽  
Jung-Chu Lin

In recent years, the formation of strategic alliances has become an increasingly common trend among developing countries around the world. In spite of this, the numerous attempts to comprehensively review the research on the correlation between these strategic alliances and stock prices over the years have, by and large, limited their discussion to how the stock price of a corporation responds to its announcement that it is forming a strategic alliance. Only a few studies have, however, discussed the announcement's indirect impact on the stock prices of investing companies that have entered into such strategic alliances. It is for this reason that we conduct an event study and develop an empirical model to measure that indirect impact on the stock prices of investing companies engaging in strategic alliances with Taiwan's high-tech industry from 1998 to 2002, while also discussing the market's different responses in their stock prices according to various industrial types that have been used to classify these investing companies.


Author(s):  
Dragana Popovic Renella ◽  
Vojin Senk ◽  
Fuada Stankovic

This is a study of the process of the development of high-tech start-up companies through the mechanisms of bootstrapping in two extremely different environments: the one of highly industrialized countries, such as USA and Switzerland; the other of Serbia, which is a post-communist transition country with particular difficulties. The research method is the analysis of case studies. One case study of US and two of Swiss start-ups build the base for the analysis. All three cases show common patterns: from the very beginning, these companies sell R&D services in their fields of expertise; and using the cash from these early sales, and the information feedback from cooperation with the early customers, they develop their resources and, eventually, also their own high-tech products. The essential feature of this process is the selling of R&D services and the first products in the neighborhoods. Then also two cases of high-tech start-ups from Serbia are analyzed. Both Serbian start-ups are founded in partnership with small high-tech companies from highly industrialized countries (Switzerland and Germany). The Western partners use their reputations and contacts to enable the early sales of the Serbian start-ups in the industrialized countries. This is crucial for the Serbian start-ups, because they have no domestic market for R&D services. Apart of this element, all other essential patterns of the Serbian cases are very similar to those of the Western cases.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronit Yitshaki ◽  
Eli Gimmon ◽  
Susanna Khavul

Purpose This study aims to examine the extent to which board size, the use of power by venture capital investors and entrepreneurs’ interpersonal tactics such as persuasion to sway board decisions, influence the long-term survival of start-ups. Design/methodology/approach This study used a mixed-methods approach. The quantitative part is based on data collected from 179 chief executive officers (CEOs) of high-tech start-ups community financed by venture capitalists (VCs) in Israel of which 59 did not survive. To achieve a better understanding of these findings, semi-structured interviews with 12 entrepreneurs were conducted. Findings Smaller boards were positively associated with venture survival. The use of power by VC investors positively influenced start-up survival. CEO persuasion had a negative effect on venture survival; however, its interaction with board size suggests that it had a lesser effect on very small boards. Practical implications Although investors’ control over decision-making contributes to long-term survival, entrepreneurs should be aware of the possible detrimental effects of exercising a high level of persuasion in board processes. The findings also suggest that a small board size is preferable for start-up survival. Originality/value Exploring the effect of board processes on venture survival is considered complex. A unique sample of high-technology start-ups consisting of both surviving and failed start-ups was analyzed to explore the effects of persuasion and power in board processes.


2019 ◽  
Vol 34 (2) ◽  
pp. 75-91 ◽  
Author(s):  
Gil Baram ◽  
Isaac Ben-Israel

Why is Israel world-renowned as the ‘start-up nation’ and a leading source of technological innovation? While existing scholarship focuses on the importance of skill development during Israel Defense Forces (IDF) service, we argue that the key role of the Academic Reserve has been overlooked. Established in the 1950s as part of David Ben-Gurion’s vision for a scientifically and technologically advanced defense force, the Academic Reserve is a special program in which the IDF sends selected high school graduates to earn academic degrees before they complete an extended term of military service. After finishing their service, most participants go on to contribute to Israel’s successful high-tech industry. By focusing on the role of the Academic Reserve, we provide a broader understanding of Israel’s ongoing technological success.


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