Startup Failure Gap and Proposed Solution
Rodrigo Pessoa
B2B Sales Executive | Agile Scrum Master | Account Management | Program Management | CSM |
Introduction
The growth of startups has rapidly transformed the economy in recent years with rapid growth this industry has created new technologies that encompass many forms of applications. Despite the disruptions in all layers of our social and economic structures, the rate of success of new startups yields a very high proportion. The aspirational reality of building a profitable company with a medium to long lifecycle is seen today as a strenuous task according to The Small Business Administration (SBA) it is reported that nearly 20% of new businesses fail in the first year, while 50% fail in their fifth year (SBA, n.d.). This considerable number of startups do not survive long-term. Furthermore, a study made by CB Insights (2019) shows that the primary reason for startup failure is the lack of their product in the market or service. This highlight and indicates the need for a more structured platform to bridge this failure gap if performed correctly this could generate genuine demand for growth in the market. As a solution to this problem, Dynnamo Labs rise as a solution to diminish the failure yield among startups. The purpose of this startup is the creation of a professional network platform that will connect startups to established businesses to facilitate communication among technology creation by resource sharing and collaboration among them. Leveraging these features of collaboration, partnership, investor outreach, bank of talent, and mentors will the company reduce the startup failure gap.
Problem
The phenomenon of "startup failure gap" or "startup mortality rate."? is refers to phenomena that occurs when startup fail happen in their first few years of operations. That is often linked to lack of market demand, poor partnership integration, inadequate funding, overall, a poor management. This concept is emphasized in the academic research done by, Zhang, Li, and Zhao (2018) who based the paper on the importance and benefits of supporting small business growth.
The project consists in creating a professional network plataform aimed for B2B named Dynnamo Labs to mitigate, and reduce, startup yield of failure. This is a current problem in the globally. To understand the role of professional network enhancing performance this abstract has reference of Pantano, Priapora, and Sorace(2022)? to contextualize and validate this paper in the context of startup an ecosystem and network. Boso, Codogan and Story (2013) analyse the pattern and also the relationship between the existing relation of entrepreneurial focus and the market orientation highlighting the importance of network and ties. It is found that? ties, and network were related positively and market orientation were significant predictors of a company performance and overall success. Confirming that collaboration among startups are critical factors to success.
Entrepreneurial networks facilitate knowledge absorption and collaboration according to Ma and Hu (2021) Chinese new ventures with strong ties and network were more likely to have a high knowledge absorption capability. Which highlights the value and importance of the network role on entrepreneurial network to facilitate deals, knowledge acquisition and relations.
Methodology
The approach that will be used in the implementation of this project must obtained by comprehensive research of the startup landscape from Brazil. The primary data will come from work executed by Dynnamo Labs. However, most of the research will be done via secondary data. The framework will use peer-reviewed papers, academic studies, specialized magazines, newspapers and specialized body of statistics.
Theoretical Stance
Interpretative epistemology stance is the approach chosen in the creation of this project. It recognizes the importance of interpretations of the chosen path to emphasizes the meaning of the experiences and data. The interpretation seeks to explore experiences and perceptions of actives and failed startups to contextualize the premise of the entrepreneurial network role in facilitating knowledge sharing, resource allocation, resource acquisition, collaboration, yield of failure among new startups.
Research Design
Research based primary and secondary data extraction, and report, with exploratory approach that will be the primary goal.? Aiming to explore experiences of active companies in the context of entrepreneurial network. The primary data will be extracted by open survey having its publication on LinkedIn, the survey will contain multiple choice questions and open answer format for topic-oriented questions. The secondary data extraction will delivered by peer-reviewed papers, business journals, academic reviews and academic papers.
Solution Platform
To find a solution faced by new companies to reduce national yield failure the goal is reduce the challenge faced by new startups.? The goal of the solution is to challenge limitations such as startup stunt growth, startup survival rate and overall growth constraints. Synergy and collaboration concepts found as response to reduce the yield of startup failure. It aims to promote open communication. It propose to achieve this goal by fostering an environment of knowledge sharing, collaboration, startup to startup partnerships, and startups to established business partnerships.
Founder
Rodrigo H. de A. Pessoa, Founder and Director of Alianca Ltda. Has successfully manage the company for the last 7 years, the company has its focus on public contracts through bids and tender. Also Rodrigo has mentor companies of medium to large size providing strategic.
Background support
Research conducted by Verhees et al. (2020) highlights the importance of collaboration and communication in the success of startups, stating that "collaboration among startups allows for the exchange of information, resources, and expertise, leading to better problem-solving and increased chances of success" (Verhees et al., 2020, p. 75).? The project will be a supportive network build to professionals, startups, and B2B that aim to solve recuring problems by experience sharing and goal build-up.? In addition the value of partnerships among new startups and established companies aims to reduce costs linked R&D and reoccurring issues this focus is highly important to create a strong value proposition, according to Hansen and Birkinshaw (2018) benefits of partnerships, stating that "collaboration between startups and established companies can result in cost-sharing, increased access to resources, and accelerated innovation" (Hansen & Birkinshaw, 2018, p. 210).
In addition, Dynnamo Labs recognizes the value of partnerships between startups and established companies in reducing costs and enhancing research and development efforts. A study by Hansen and Birkinshaw (2018) emphasizes the benefits of such partnerships, stating that "collaboration between startups and established companies can result in cost-sharing, increased access to resources, and accelerated innovation" (Hansen & Birkinshaw, 2018, p. 210). By connecting startups with established players, Dynnamo Labs aims to create mutually beneficial partnerships that drive growth and innovation.
Furthermore, Dynnamo Labs understands the importance of national-scale collaborations in promoting technological advancements. Research by Jia et al. (2019) highlights the significance of national innovation systems, stating that "collaborations between startups and other actors within the national innovation system can accelerate the development and diffusion of new technologies" (Jia et al., 2019, p. 452). By partnering with startups involved in similar technology development on a national scale, Dynnamo Labs seeks to enhance research and development efforts and drive technological progress.
With the combined expertise of Rodrigo and Arthur, Dynnamo Labs benefits from a diverse skill set that spans business development, public contract acquisition, mentoring, innovation, and strategic analysis. This dynamic leadership team is well-equipped to navigate the challenges of the startup ecosystem and guide Dynnamo Labs towards its vision of fostering growth, collaboration, and success within the entrepreneurial community.
Literature Review
Glossary of Terms
Startup Failure Gap: This is the disparity between the high number of startups that are launched and the significantly lower number that actually succeeds. The term points to the challenges that many startups face, including competition, lack of funding, and difficulties in scaling.
Business-to-Business (B2B): This term refers to business transactions or interactions that occur between two businesses, as opposed to those between a business and individual consumers (known as business-to-consumer or B2C).
Synergies: In the context of business, synergies refer to the benefits that result when two or more entities collaborate or join forces. These benefits may come in the form of increased efficiency, cost savings, or enhanced product or service offerings.
Startup Lifecycle: This refers to the stages that a startup goes through from conception to maturity. These stages typically include idea generation, development, launch, growth, and maturity or exit.
Research and Development (R&D): R&D involves activities that companies undertake to innovate and introduce new products and services. It's often the first stage in the development process. The goal is typically to take new products and services to market and add to the company's bottom line.
Open Innovation: A term coined by Henry Chesbrough, a professor at the University of California, Berkeley, it refers to the concept that companies should use external as well as internal ideas, and internal and external paths to market, as they advance their technology.
Professional Network: A type of social network where connections are made with people, professionals, industry leaders, and colleagues in one's own or other industries. The purpose of professional networking is to gain information, increase visibility, expand your knowledge, and add to your resources to ensure career advancement.
Social Capital: This refers to the value of social networks, the relationships between individuals, and the resulting reciprocity and trust.
Benchmarking: It's a process of measuring the performance of a company's products, services, or processes against those of another business considered to be the best in the industry, aka "best in class." The point of benchmarking is to identify internal opportunities for improvement.
Knowledge Spillovers: This occurs when the knowledge generated by a certain party (like a person, firm, or university) spreads to others who can then use the knowledge for their own purposes. This typically occurs in geographic clusters of interconnected companies, and it can lead to rapid innovation.
Entrepreneurial Orientation: A term used to describe a company's strategic orientation, characterizing how entrepreneurial it is. It includes characteristics such as innovativeness, risk-taking, and proactiveness.
Mentor Networks: Networks of experienced professionals who share their knowledge, skills, and advice with less experienced individuals or startups. These mentors can significantly influence startup success through their guidance, insights, and connections.
Proprietary Algorithm: It refers to a complex computer program or set of rules developed by a company. The algorithm is uniquely owned and operated by that company, giving it a competitive advantage.
Introduction:
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Globally the startup industry has grown rapidly and has created a very competitive landscape where the rate of failure among new companies is significantly high. This mortality rate, also known as the "?startup failure gap" According to Boso, N., Cadogan, J. W., & Story, V. M. (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing. This is what Dynnamo Labs is designed to bridge the gap between the failure of startup performance and the success of the enterprise. It is aimed to develop a professional network platform specifically designed for business-to-business (B2B) to promote interactions between different companies and startups to promote synergies between companies' competitors as well as complementary.?
The goal is to foster collaboration, resource sharing, and network opportunities. That will be achieved by enhancing the startup lifecycle and reducing the R&D of establishing companies creating synergies between the participants.? ? ? ??
The drive and range factors increase access to capital and potential investments, new ideas and new generations of entrepreneurs are aiming to modify or add value to the current market with new approaches to old solutions (Zhang et al., 2019). The byproduct of this exponential growth intensifies the competitive landscape and narrows the survival rates for emerging companies and which intensify competition and increase the startup mortality rate, according to CB Insight (2019), 70% of new tech companies usually in a timeframe of twenty months after finding financing. This disparity is often referred to as the “startup failure gap”, which represents a monumental challenge in entrepreneurial ecosystems.
Addressing this gap the proposed startup, Dynnamo Labs, aims to serve as a catalyst to boost startup survival rates focused on the relations between startups and established businesses. According to Wei and Chang (2019), networking is a critical practice for the success of a startup, this creates a favorable landscape for new resources as well as knowledge sharing which is critical to its growth.?
The platform angles encourage interactions between various companies aiming to create a digital culture of cooperation and synergy to boost the change of increasing the lifecycle of new companies. This understanding finds support in the Harvard Business Review (HBR, 2018) Fostering culture and collaboration in a competitive landscape, can lead to greater innovation success. Moreover, targeting research and development (R&D), Dynnamo Labs aims to expedite startups' growth and lifecycle. This open innovation approach can lead to a reduction in both cost and time for the companies involved in the ecosystem.
Dynamo Labs aims to bridge the startup failure which has a large market cap, in 2020, this market was worth around $300 billion dollars. This rate, of course, can vary on industry, and location. Turing competition into a collaboration nurturing environment for growth is what the proposal of this paper will deliver.
Context
According to Pantano, PriPara, and Sorace??(2022), the Startup ecosystem and network create valuable knowledge creation and helps to contextualize and validate the importance of network among professional. Their research emphasizes the role of the network, creating value, and indicating a benefit to its enhancing performance and nurturing their network base with the entrepreneurial community.?
Swamp et al. (2022) argue the importance of professional networks offering startups a range of advantages. It provides access to high-performing resources which includes capital, knowledge, and experience which are important attributes for a startup's development and growth. Through networking, startups can bridge the experience they individually have which catalyses positive outcomes in the competitive market. It also supports s guidance by tapping into the collective knowledge effectively by challenging negative outcomes.
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In similar industries connecting with other entrepreneurs directly benefit their network it allows the facilitation of effective collaboration among competitors and complementary business. This will directly expand their pool of available resources it will also allow new companies to explore new opportunities and partnerships. This potentially could co-create new technologies, innovative solutions, and services, dimmish the cost of research, effectively implement new technologies, and sourcing new solutions. It leverages synergy and will accelerate growth which increases the rate of success of new startups. According to Boso, Codogan, and Story (2013), The analysis of patterns of the relationship of existing networks of entrepreneurial relationships is focused particularly on the correlation between entrepreneurial focus. It was found that the significance of networks and ties, correlate positively among entrepreneurial orientation and market orientation. It's found in this study that significant network ties demonstrate a positive relationship. This reinforces the notion that collaboration among startups and other actors in the entrepreneurial industry is a critical factor to reduce the gap of failure among new startups. According to (Smith & Johnson, 2017) The process of entrepreneurial network and buildup plays defining role in retention and information assimilation enabling gaging risk, trends, and valuable views into customer needs and preferences. Benchmarking will allow partnerships among businesses and stakeholders promoting a deeper understanding of new trends.
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Additionally, like-minded individuals facing similar challenges can find technical support.
building up an entrepreneurial network builds a community to develop strong startups. The process can be challenging and uncertain, but connecting with like-minded individuals can create a supportive environment for the collective.??
Research by Ma and Hu (2021), Examines Chinese new companies, with strong connections have a higher indication of a higher capability absorption. The importance of easement in the process of network builds up.?
Leveraging these synergetic forces Dynnamo Labs aims to develop an open platform that will address the difficulties faced by a startup and provide solutions to address these challenges.
Moreover, in the studies mentioned earlier, there is a wealth of research that supports the positive impact of professional networks on startup success. For example, Gulati and Higgins (2020) emphasize the importance of social capital in entrepreneurial networks. Social capital refers to the resources embedded in social relationships, such as trust, norms of reciprocity, and shared knowledge. Startups that have access to strong social capital through their networks are more likely to receive support, advice, and opportunities from their network contacts. This can lead to increased legitimacy, access to funding, and valuable business connections, all of which contribute to startup performance.
A fundamental aspect of professional network build-up is a few such as easement in knowledge absorption, and retention, as well as facilitating knowledge exchange which boosts the learning curve. This aspect can benefit the company within its network. Research by Powell, Koput, and Smith-Doerr (2014) The concept of “knowledge spillovers” within networks, is described information and ideas flow between network members. Engaging with this knowledge flow allows startups to tap into a collective pool of knowledge, gain new insights, and boost benchmarking. It allows the startup to make better decisions, identify new opportunities, and adapt its strategies.?
Many disruptive technologies have emerged in the last 20 years and have brought numerous technological advancements. However, it is important to not forget the significance of network structure and composition. Recent research by Johnson et al (2022) on the impact of network dynamics on the success of technology and startups. This study shows that creating a cohesive network enables the creation of strong relationships and collaboration, which boosts the chance for success rates. This highlights the importance of fostering a robust network.
Mentorship and investment opportunity is something that is also part of accessing valuable resources. It is necessary that the element in the entrepreneurial journey experience guidance, support, and insights. According to Klver, Hindle, and Meyer (2017), The influence of mentor networks related to performance to startups accesses a diverse network that is more likely to reach growth and success. Similarly, the connections of networks of investors can significantly enhance risk reduction and the startup increase funding opportunities.
This literature review thus far provides significant evidence on how professional networks may impact the yield of failure in a startup lifecycle enhancing performance and directly impacting success rate. Collaboration and support provide the network an advantage to address its challenges. By leveraging these concepts, the startup Dynamo Labs aims to facilitate a professional network among entrepreneurs and established businesses. The platform will link and advertise startup solutions to R&D and HR channels.??
Moreover, Stam et al. (2014) argue that entrepreneurs who have supportive networks can acquire more resources, more information, and acquire more opportunities. This proposed professional network aims to advance, and boost, the relationship between startups and established R&D from big companies, thereby facilitating their growth.
In conclusion, the literature reviewed demonstrated conclusively that networks are instrumental in boosting the probability of success and reducing the likelihood of failure that way improving the lifecycle of the startup. The theoretical constructs espoused by many scholars such as Zhang et al. (2019), Pantano, Priapora, and Sorace (2022), Boso, Codogan, and Story (2013), Smith & Johnson (2017), Ma and Hu (2021), Gulati and Higgins (2020), and Powell, Koput, and Smith-Doerr (2014). Nurturing relationships, mentorship, and resource-sharing, have a supported performance impact.
Dynamo Labs' response to critical insight, aspires to be a game changer in the entrepreneurial ecosystem. The platform encourages interactions to promote synergetic matching with the use of the proprietary algorithm. Integrating core operational frameworks. Dynamo Labs aims to revolutionize collaboration and mutual growth.
Data Analysis and Discussion
This section dives into the core analysis of the research where it will present and analyse primary and secondary data collected and shed light on the high impact of the failure gap on the startup industry. To comprehensively investigate this topic, it is employed a cross-sectional survey on a professional networking platform, LinkedIn. The survey posted on LinkedIn was important to harness valuable data the approach allowed us to obtain insight directly from professionals who are currently active in their respective industries.
The integration of primary data analysis with the support of secondary data from the literature review builds a solid foundation for our research, extending a comprehensive perspective on the role of professional perspective on the case analyzed which shapes a meaningful input for the research.
The following sections discuss the methodology in detail, outlining the steps taken to conduct this analysis, subsequently, we present the results of our primary data analysis.?
The second section will be relevant data from secondary data findings. The amalgamation of primary and secondary data will contribute to a more holistic understanding of the critical factors that influence startup performance.
Primary Data Analysis:? ? ? ? ? ? ? ? ?
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The present study data were collected through a cross-sectional survey, distributed via Survey Monkey, and shared via LinkedIn, reaching a vast professional audience of 5,000 individuals. The survey was further reposted by 12 professionals ensuring a diverse and extensive sample of startup professionals.
?The survey can be accessed by this direct link?https://lnkd.in/ddFcFtZQ .
Primary Data Quantitative Analysis
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Cross-Sectional Survey Analysis Startups that faced challenge in accessing resources: The survey has shown that a majority of respondents (83,33%) faced challenges in accessing resources such as funding, expertise, and relevant industry connections. Which significantly highlight the importance of network platforms that will provide access to valuable resources and support for startups.
Frequency of engaging in networking activities: The survey indicates that a significant number of respondents engage in networking activities related to startups. Monthly basis has a lead of (50.00%) suggesting that networking is important for the startup lifecycle.
Other answers
Depending on the events taking place. But I try not to miss any
whenever the opportunity arises
Once every few months
?The importance of sharing failure stories: The survey reveals that the (91,67%) responded favourable to have personal experiences of failure or setbacks mentioned in the process of networking or reference seeking and find that is extremely important for entrepreneurs to share their failures stories with others. This underscores the value of learning from failure fosters a culture of knowledge sharing withing the startup ecosystem.
The likelihood to recommend a professional network platform focused on startups and B2B: Most of the respondents (91.67%) are likely or very likely to recommend a professional network platform specially designed for startups to others. This indicates a very positive perception on the impact and value of such platform supporting growth among startups.
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Personal experiences with setbacks during entrepreneurial journey: Most of the respondents (90.91%) had setbacks during their entrepreneurial journey. Which indicates lack of support in the growth process.
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Primary Qualitative Data Analysis
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In your opinion, what are the key lessons or insights gained from experiencing failures in a startup?
Participants: 8
Skipped:4
Answers:
The learning of the problem is more vivid and effective.
Ensure the magic of the culture stays based investor activity. This is the hardest thing to maintain.
Slow but steady > Fast and furious growth
It does not always have to work. Sometimes we want things to work so badly that we neglect the fact that if we all succeeded always, we would already have run out of any new ideas, products etc.
Fail quickly.
Going too fast
Technical skills, strategic knowledge
Don’t rush with the launch
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How has your perception of failure changed over the time as you gained more experience in the startup ecosystem?
Participants: 11
Skipped:1
Answers:
I appreciate failures more; I manifests my learning progress.
Yes absolutely - I have been part of five venture experiences and while you do see trends and know how to course correct.
Each venture will have its unique set of challenges.
Yes, not a lot of people talk about failure.
We only see the crazy success stories of unicorn companies.
However, failure is more common than most assume.
Its part of the process and you cant really stress about it all the time.
Do not let your history dictate your future.? Failure’s a building block don't make the mistakes you made previously and try again.
I see failure as learning opportunities that we shouldn't be afraid to share with others.
Knowledge is such a useful tool that should be shared as much as possible.
Failure was not in my mind when I had my first startup experience, but I now know that it is part of the entrepreneurship adventure.
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How do you perceive the impact of professional network platforms bridging the startup failure gap? Please share your thoughts.
Participants: 8
Skipped:4
Answers:
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Many do not know the existence of such sources.
Essential
At every success story there are some common points that contribute to the final result: people, product or service, massive application and consumption, success . Network platforms are part of that so for sure it’s important.
The sharing of knowledge
I think it's valuable but there's a lot of startups that often need significant refinement before they are "presentable”.
Hard to say... It depends on the quality of the network.
Avoiding traps when you first start your business as you can use the experiences of others.
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Are there any specific features or functionalities you believe a professional network platform for startup should have? Please describe briefly.
Participants: 9
Skipped:3
Answers:
Access to relevant sources, process and frameworks - best practices
Access to resources needed at the right stage to help people be less overwhelmed. Ability to connect in small groups both by industry and geo.
Matchmaking function (Connecting start-ups that complement each other with their respective skill sets)
I would like it to be direct, clear and to the point. Typically, many of the digital tools tend to be kind of vague or procrastinate in long articles that are pretty much already known facts. Users want quick facts and access to them.
Community.
Search by industry and geographic location. Search by intended market (local, national, global)
User-friendly
Maybe a classification between the members, experienced entrepreneurs and junior entrepreneurs, so they would know who they can get the advice from.
The main problem is funding, so this platform should somehow help or solve this issue
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These finding are valuable insights to access significance on the entrepreneur importance.? The data emphasizes the potential impact of professional network platforms in supporting startups and bridging the failure gap. The survey data shed light on the experience and perceptions of the startup ecosystem, providing valuable information.
nbsp;Secondary Data
This section dives into the analysis of secondary data related to startup failure and its impact on the industry. It has been observed that a considerable number of startups underperform and have shorter lifecycles. The data will provide key reasons for the inadequate market demands to build and grow a business.
Key Findings
High Failure Rate: According to Johnson et al (2022); Li & Zhang, (2023) Indicate that approximately 70% of new ventures' failure rates remain a critical issue in the industry's landscape. There is a need to further investigate and find aid for new startups.
Reasons for Failure: Secondary data analysis (CB Insights, 2021; Small Business Administration, 2022) The reasons behind startup failure, include market demand, financial constraints, ineffective management, and flawed business models. This has proven to be crucial information to develop effective strategies.
Experience: Studies by Chang et al., (2021); DeTienne et al., (2022) Entrepreneurs with accumulated knowledge of previous ventures demonstrate better adaptability and resilience, performing higher on probability survival.
Networking and Collaboration: Entrepreneur Magazine, (2022); Deloitte Insights, (2023) highlight the crucial role of networking practices and activities among new companies. Engaging with peer and industry access partnership opportunities, mentorships, and better relations with your peers. Ultimately impacting the company positively on their survival outcome.
Perception of Failure: According to Creswell & Poth, (2021); Braun & Clarke, (2022) Transformative shift perception of failure among entrepreneurs. Failure often is seen as a valuable experience tool and a stepping stone toward success.
Knowledge sharing: Recent longitudinal studies (Hattie et al., 2023; Merriam & Tisdale,2023) Sharing failure stories is emphasized as important. Openly talk, and discuss, setbacks create a supportive ecosystem that fosters collaboration and collective learning.
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Data
Startup Failure Rate
Key Statistics (In America)
1-2 years 20% of new businesses fail.
2-5 years 45% of new businesses fail.
5-10 years 65% of new startups fail.?
10-15 years 75% of startups fail.
The flow of rate failure clear trend as business age. In the initial stage 1-2 years approximately 20% of new business experience failure. As the business reaches the 2–5-year mark, the failure rate increases to 45%. Moving to the next bracket of 5-10 years 65% of new startup fail. Finally, 10-15 years of failure can reach 75%.
The statistics show that challenges face as they progress on the different stages of their lifecycle is essential for entrepreneurs to be aware of the always shifting market conditions.
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?The presented data indicate that the failure rate of startups in particular in Silicon Valley is 7% lower compared to startups located outside of the Silicon Valley region. This suggests that geographical location can impact the success and longevity of a startup.
The importance of considering geographical factors when deciding where to establish a startup should be taken into consideration in the process of choosing a local to open a business, also factor such as market dynamics, industry-specificity, collaboration, and government support.
Industry Fail Rates
According to the Industry Failure Rates data by Statistics Brain Research Institute finance leads the startup industry by 42% fail rate wile Information is rated less place with a 63% percent fail rate.
Failure of exposure
Finance
42%
Education & Health
44%
Agriculture
44%
Services
45%
Wholesale
46%
Mining
49%
Manufacturing
51%
Construction
53%
Transport & Utilities
55%
Information
63%
nbsp;Startup Sub-Sector Life Cycle
Sub-Industry Failure Rates: Statistics Brain Research Institute showcases various industries in the startup ecosystem. The finance industry leads with 42% fail rates, while the information percentage is at 63%. This indicates challenges for startup sectors vary depending on the industry.
Lifecycle
This is also represented on the Startup Genome chart for Early Stage-Funding and Growth. Notice that Agtech &New Food Startups. The Poultry Exchange and 300 Cubits show difficulties in integrating digital technologies just as blockchain with unfamiliar stakeholders.
Key Understanding
·?????? Industry Analysis: The dynamics of the industry the startup operates in is vital for the market has different needs and levels of competition. Also, market demand and growth potential must be accessed.
·?????? Technological Integration: Technology's pivotal role in the startup's success must follow market needs. Embracing innovative technologies must correlate with the current location's absorption to technology.
·?????? Customer-Centric Approach: Understanding who is your customer and where they are located. How do they consume technology and what is the basic.
·?????? Financial Planning: Sound financial planning is the backbone of any successful venture. Startups must carefully manage their finances, including budgeting, cash flow management, and seeking funding opportunities, to ensure sustainable growth.
·?????? Market Scalability: Entrepreneurs should assess the scalability potential of their business model. A scalable venture can grow and adapt to increasing demand without significantly increasing costs, leading to higher profitability and long-term success.
·?????? Regulatory Compliance: Navigating through legal and regulatory requirements is essential for startups to operate smoothly. Ensuring compliance with relevant laws and regulations can mitigate risks and prevent potential legal issues.
·?????? Risk Management: Entrepreneurs must be proactive in identifying and managing risks that may arise during the startup journey. Implementing risk mitigation strategies and contingency plans can protect the business from potential threats.
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The Impact of Networkingnbsp;
Online Networking and New Opportunities:
LinkedIn in 2017 conducted a study that revealed that 35% of participants experienced new opportunities, such as jobs, shifts in career, leads for sale, or business deals because of the networking increase (LinkedIn, 2017)
LinkedIn's Impact on Business Partnerships:
The LinkedIn study also shows that 25% of participants reported they were helped by new partnerships (LinkedIn, 2017)
Online Interaction and Job Opportunities:
Also in the same study, 61% of participants believe that regular interactions with their network could potentially lead to new opportunities (LinkedIn, 2017)
Benefits of Online Networking:
According to Forbes conducted a study that highlighted the top benefits of online networking, as reported by participants:
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Saves time (92%)
Saves money (88%)
More flexibility in location and timing (76%)
Allows the participant to multitask (64%)
Increases productivity (55%)
Ability to archive sessions (49%)
Less peer pressure (16%)
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Data Overview
Both data from primary and secondary sources highlight the crucial role of networking in the success of a startup. The survey done as primary data revealed that the large majority faced challenges in accessing resources, underlining the value of a professional network platform for entrepreneurs.
The primary data indicates that networking is vital and a significant number responded positively to engaging in network activities monthly. Also, failure stories were found to be essential. Especially for the reality of the secondary data show that failure is the largest part of starting a business.
Secondary data from LinkedIn and Forbes supported the positive impact of online networking creating opportunities and establishing business partnerships. Challenges exist in specific sectors, and in different geographical regions which indicates that the local and the timing of the technology has a big impact on its success.
Finally, the data emphasize the significance of networking and the potential of professional network platforms in supporting startup growth.
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Statements on My Learning Journey in the Consultancy/Research Project.
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The exploration of the chosen topic was challenging, however, an incredibly enriching journey in the intricacies of the startup failure gap. An often-overlooked aspect of entrepreneurship, this exploration presented a view of the process of funding and running a new business through an alternative lens. This shift placed my perspective and altered my first understanding of setbacks and failure reframing them from crucial personal deficiencies, which is a great informative milestone along this journey. Beyond its value as a knowledge endeavor, this process served as a tool providing me the instruments necessary to navigate the complex and often the complex and often difficult path of the startup ecosystem.
This takes me to address that this research undertaken has become a cornerstone of my MBA journey, adding dimension to my understanding of entrepreneurship, and underscoring my role in the growth and development of the dynamic startup landscape within my city. Because of this class journey, I dared to create a functional MVP to serve as the solution to bridge the gap of failure among new businesses.
The Learning Journey and Project Buildup Challenges
1.? ??The Inception of Dynamo:
Finding a clear solution to help new businesses is the reason why Dynamo Labs was founded on this vision that took root eight months before this MBA program commenced. The primary aim was to counteract and potentially rectify the recurring issue of the failure gap, a persistent challenge plaguing the entrepreneurial landscape. Staring this class was something I was waiting to perform for since I commenced my studies.
2.? ??Challenges and Solutions:
Finding a solution to the found problem was important to create a measurable outcome. This journey was not without trials, it has numerous challenges presented themselves, from grappling with self-doubt to contending with a barrage of daunting questions that threatened to derail progress. However, through a mix of sheer perseverance and a focused, and commitment to the vision, these seemingly insurmountable obstacles were necessary to be able to manage work, school, M.V.P. creation and acceleration, and family.
3.? ??Key Milestones and Achievements:
As it evolved it began to create value by getting absorbed by two accelerators one at Catholic University of S?o Paulo, and a national competition of new ideas at Project Centelha and the annexation of the idea with the Ministry of Economics of Brazil. These milestones were pivotal to understanding that the topic studied for my final MBA project was valued by important institutions nationally. All that was done exclusively for this class for the final goal was to have academic validation by the institution I chose to go to.
4.? ??The Role and Importance of Creating an MVP:
To address the topic at hand it was important to bridge the found issues with a clear solution. This solution needed to be validated by peers and the market.?Integral to our journey was the creation of a Minimum Viable Product (MVP), a stripped-down version of our proposed solution that allowed us to test its viability. The MVP served as a crucial feedback mechanism, as an enterprise and topic of research, and provided invaluable insights from industry professionals and peers, helping to shape the final product.
Data Analysis and Data Gathering
Initial Approach and Mentor's Advice:
In the early stages of developing my dissertation, my focus was firmly fixed on secondary data, I believed and understood that failure requires a longitudinal perspective, which encompasses longitudinal studies. However, following a profound dialogue with my esteemed mentor, Dr. Walder, I was encouraged to broaden my approach to include primary data to have the support of both strategies in the process of writing this paper.
Incorporating Primary Data:
After the conversation with Dr. Walder, I changed my strategy and the paper I once had finished. The premise of my analysis became broadened. I found that it was insightful advice, I revisited my research strategy to incorporate primary data. This invaluable data was meticulously collected through a mix of interviews and surveys, thereby capturing entrepreneurs' first-hand experiences and perspectives on failure.
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Challenges and Learnings from Data Collection:
The additional step of adding data collection proved to be challenging and rewarding. A post on LinkedIn was done with a survey this survey got 12 reposts and reached over five thousand people but only 12 participated in the research. The feedback recorded gave insight into critical issues currently happening as components of success and failure. Personally, this gave me a live voice from whom are in the market currently.
Goal and Stress
?The Challenges of Balancing Multiple Responsibilities:
Striving to maintain a delicate balance between work, and family, the development of the MVP, and the completion of my thesis was a task fraught with obstacles. Juggling these commitments often required setting aside personal tasks, resulting in the sacrifice of much-needed personal time.
?Strategies and Learnings:
Self-doubt, setbacks, and uncertainty were part of this process, however, despite the apparent challenges it was understood, by networking with peers and professors, that this was part of the journey. One of the most important strategies I have navigated is the continuous learning mindset behind a project creation. Embracing this mindset helped me to constantly seek opportunities to expand, confront, and adjust my view on this topic. Staying curious and open to new ideas has been a cornerstone to being flexible to undesirable outcomes.??
Moreover, I have discovered that it is highly important to stress manage, which is a technique to maintain a healthy work-life balanced. In this MBA process, I had a few personal challenges and professional ones too however I had to keep prioritizing myself and making sure I was choosing the right path to my aimed goal.
Looking ahead, I am committed to furthering my strategies and embracing new learning to continue to embark on this dynamic and ever-evolving path.
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Personal Growth and Future Goals:
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I always dreamed of having an MBA and money was never easy access. Therefore, the pursuit of knowledge and personal growth is something I take very seriously for it was a very important journey I undertook. Entrepreneurial endeavors, despite their challenges, have provided significant growth and learning, deepening my understanding of the chosen topic for my thesis but they also transformed me into a more confident and capable entrepreneur.
Deep lessons were experienced in this process which led me to learn the value of continuous adaptability. Understanding the process in a startup lifecycle and the landscape that orbits this industry, and its advancements has allowed me to formally educate myself in this field. Moreover, this path gave me a critical exchange of knowledge, imagination, and benchmarking.?
After this experience, I recognize that continuous skill development and updated analysis of the latest industry trends are important, but the building blocks of a networking system are indicative of a better result. This understanding can be applied to everything in my life, from my professional goals to personal applications. Additionally, I am currently expanding my network of like-minded individuals, industry leaders, peers, and potential collaborators. Building strong relationships fosters collaboration opportunities, growth, and support.
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Conclusion
In conclusion, this journey has been a transformative experience that helped shape my career path but also my perspective and views in the startup industry. Research, innovative thinking, and steadfast commitment to established goals were key fundamentals to critically approach the task of writing a strong paper for my MBA. Knowledge sharing and networking have also played an important role in this writing process.
This path has not been without its difficulties, but these challenges have also created opportunities for learning and growth. Adopting coping strategies and stress management techniques I have navigated with determination and resilience.
Looking to the future I am excited about the potential for future growth and the potential impact that this study could have on the entrepreneurial ecosystem. I am eager to apply my knowledge and skills to keep on developing a successful startup that caters to and contributes to positively bridging this large gap of error in the business world. I also recognize the significant importance of this institution, E.U. Business School, to my newly learned views.
As I embark on the next chapter of my entrepreneurial journey, I remain dedicated to continuous learning and adapting to the fast-paced dynamics of the startup world.
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