Early-year start-up failures : investigation of postmortem of seventeen early-year start-ups
Doğan, Güney (2023)
Pro gradu -tutkielma
2023
School of Business and Management, Kauppatieteet
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2023061956427
https://urn.fi/URN:NBN:fi-fe2023061956427
Tiivistelmä
The start-up failure topic is popular both in practitioner-oriented and academic literature, the scope of the previous research on evaluation and categorization of the failure reasons by focusing on a big sample of start-up failures. In contrast to previous research, this research used a small sample of 17 failed start-ups data. The small sample is utilized to understand the events that cause the failures and the different circumstances behind the failure. This study is conducted to provide a closer look at the failures to gain and provide insights to reveal the paths that led to failure.
The study used a qualitative research method and collected secondary data to analyze seventeen early-stage start-ups’ failure stories, the early-stage start-ups' criteria set as receiving funding until the series C funding stage. The subject start-ups come from five different countries: India, Chile, France, the United Kingdom, and the United States, and operating in different industries. The failure stories and the funding pieces of information are collected from various resources and analyzed using qualitative analysis research using Balanced Scorecard to investigate the failure reasons.
The research revealed that most start-ups require assistance with internal processes, such as ineffective management and the desire to grow rapidly. The second most prevalent challenge identified was related to understanding and effectively communicating with the customers. The findings demonstrate that start-ups require support in building a customer base and establishing meaningful dialogues with their customers. Financial problems emerge as another critical issue that start-ups struggle with. The management of the financial resources, experiencing high burn rates due to the competition, and problems with establishing sustainable revenue models are the most common problem experienced by start-ups. Last but not least, the learning and growth area is one of the critical points that start-ups need help with creating an innovative company culture and adapting to changing trends in the market.
The research investigated individual studies to enlighten the path of failure for the seventeen start-ups. The results of the start-up failure are important to state the potential dangers and pitfalls in front of the entrepreneurs. The lessons that can be learned from the outcome of this search would be helpful for future serial entrepreneurs to enhance their customer base.
The study used a qualitative research method and collected secondary data to analyze seventeen early-stage start-ups’ failure stories, the early-stage start-ups' criteria set as receiving funding until the series C funding stage. The subject start-ups come from five different countries: India, Chile, France, the United Kingdom, and the United States, and operating in different industries. The failure stories and the funding pieces of information are collected from various resources and analyzed using qualitative analysis research using Balanced Scorecard to investigate the failure reasons.
The research revealed that most start-ups require assistance with internal processes, such as ineffective management and the desire to grow rapidly. The second most prevalent challenge identified was related to understanding and effectively communicating with the customers. The findings demonstrate that start-ups require support in building a customer base and establishing meaningful dialogues with their customers. Financial problems emerge as another critical issue that start-ups struggle with. The management of the financial resources, experiencing high burn rates due to the competition, and problems with establishing sustainable revenue models are the most common problem experienced by start-ups. Last but not least, the learning and growth area is one of the critical points that start-ups need help with creating an innovative company culture and adapting to changing trends in the market.
The research investigated individual studies to enlighten the path of failure for the seventeen start-ups. The results of the start-up failure are important to state the potential dangers and pitfalls in front of the entrepreneurs. The lessons that can be learned from the outcome of this search would be helpful for future serial entrepreneurs to enhance their customer base.