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The life expectancy of tech start-ups in India: what attributes impact tech start-ups' failures?
International Journal of Entrepreneurial Behavior & Research ( IF 5.995 ) Pub Date : 2021-10-04 , DOI: 10.1108/ijebr-01-2021-0025
Ganesaraman Kalyanasundaram , Sitaram Ramachandrula , Bala Subrahmanya Mungila Hillemane

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.

中文翻译:

印度科技初创企业的预期寿命:哪些因素会影响科技初创企业的失败?

目的创业者通过坚决应对多重挑战以避免失败,培养他们创办科技初创企业的雄心,这些初创企业尽管存在脆弱性和相当大的不确定性,但仍能促进重大创新。鉴于科技初创企业的生命周期包含多个形成阶段,以及哪些属性加速科技初创企业在其生命周期内的失败,该论文旨在回答科技初创企业多久会失败?这些问题尚未得到充分回答,特别是在印度新兴经济体的背景下,一个有抱负的初创生态系统正在努力以惊人的速度蓬勃发展。设计/方法/方法该研究解决了两个具体目标:(1)预期寿命是否生命周期阶段之间的差异?(2) 哪些属性会影响科技初创企业 失败?主要数据来自印度 6 个领先的初创中心的 151 位联合创始人(101 位经历过失败,50 位成功并继续运营)。使用包括非参数 Kaplan-Meier 估计在内的生存分析技术来研究第一个目标和半参数 Cox 比例风险回归以探索第二个目标。结果生存概率对数秩统计确定预期寿命在整个生命周期阶段,即出现、稳定和成长。风险比 (HR) 揭示了阶段、收入、与投资者的冲突、当前初创企业数量、联合创始人经验、信心水平 (LoC) 和教育资格等属性,这些属性是影响初创企业预期寿命的关键属性。它的生命周期。实际意义关于科技初创企业预期寿命的实证研究除了指导生态系统的政策制定者外,还对企业家和投资者具有实际意义。首先,该研究帮助企业家规划资源并了解他们的创业之旅的潜在陷阱。其次,该研究帮助投资者建立参与框架并规划他们未来的融资策略。第三,该研究帮助政策制定者设计和建立可以防止初创企业失败的渐进式支持机制。原创性/价值首先,生命周期阶段的初创企业预期寿命研究为初创企业的失败提供了详细的见解。所定义的理论框架具有可复制性、可扩展性和明显可测量性,可用于研究启动失败现象。按生命周期阶段划分的科技初创企业的预期寿命是一项重要的实证贡献。接下来,在新兴经济体的背景下确定影响启动预期寿命的属性。
更新日期:2021-10-04
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