Failures of a New Start-up Business
Toivanen, Antti (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202302102267
https://urn.fi/URN:NBN:fi:amk-202302102267
Tiivistelmä
Numerous start-up companies are formed every year, from which up to 20 % fail within the first 12 months. Understanding the failure process of start-ups is important to avoid common pitfalls that are relevant for most companies. One important aspect is to understand what are the requirements of entering a market with a viable and competitive business model.
This study uses a case company as an example of what can happen when there is a disconnection between the business model and expected market entry and the real market requirements. Although the case company was expected to have a good product-market fit it eventually failed due to the discontinuity in the expected and real market requirements, which were more regulatory related than was expected.
The literature review part of this work shed light to the facts that often lead to start-up companies ultimate failure. This work also shows how many start-up companies survive their first years and what are the most important factors for survival.
This study uses a case company as an example of what can happen when there is a disconnection between the business model and expected market entry and the real market requirements. Although the case company was expected to have a good product-market fit it eventually failed due to the discontinuity in the expected and real market requirements, which were more regulatory related than was expected.
The literature review part of this work shed light to the facts that often lead to start-up companies ultimate failure. This work also shows how many start-up companies survive their first years and what are the most important factors for survival.