A Study on High-tech Startup Failure : Antecedents, Outcome and Context
Öndas, Vedat (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202104255709
https://urn.fi/URN:NBN:fi:amk-202104255709
Tiivistelmä
A significant number of startups fail during their first years of operations, and most of
them crash within five years. A wide range of reasons for startup failures has been
identified in the literature. However, most of the reasons for startup failures are too
general in that they focus on startups in general. In this regard, not every factor may be
responsible for the failures of some startups.
Although there are adequate investigations that have provided substantial evidence about
different reasons that cause startups failure, this study aimed to review these reasons
collectively to determine how they relate to high-tech startup failure.
This study used a qualitative research method to collect and analyze data from 15
founders of high-tech startups in the United States (US), Finland, and Canada. The
researcher conducted interviews through Skype and analyzed data using thematic analysis
to derive relevant themes to the study. Likewise, the researcher conducted a profound,
systematic review to identify themes relating closely to startup failures.
The results showed that high-tech startups failures relate closely to product and market
challenges (product timing difficulties, product design problems, improper or absence of
selling strategy/ distribution channels, and small market size), financial problems (initial
undercapitalization and debt burden), and management issues ( lack of competent teams
and human errors).
The study showed that a wide range of factors leads to the failure of high-tech startups.
Therefore, founders and personnel working in these high-tech startups should pay
attention to the identified areas to minimize the chances of failure.
them crash within five years. A wide range of reasons for startup failures has been
identified in the literature. However, most of the reasons for startup failures are too
general in that they focus on startups in general. In this regard, not every factor may be
responsible for the failures of some startups.
Although there are adequate investigations that have provided substantial evidence about
different reasons that cause startups failure, this study aimed to review these reasons
collectively to determine how they relate to high-tech startup failure.
This study used a qualitative research method to collect and analyze data from 15
founders of high-tech startups in the United States (US), Finland, and Canada. The
researcher conducted interviews through Skype and analyzed data using thematic analysis
to derive relevant themes to the study. Likewise, the researcher conducted a profound,
systematic review to identify themes relating closely to startup failures.
The results showed that high-tech startups failures relate closely to product and market
challenges (product timing difficulties, product design problems, improper or absence of
selling strategy/ distribution channels, and small market size), financial problems (initial
undercapitalization and debt burden), and management issues ( lack of competent teams
and human errors).
The study showed that a wide range of factors leads to the failure of high-tech startups.
Therefore, founders and personnel working in these high-tech startups should pay
attention to the identified areas to minimize the chances of failure.