Avoiding start-up failure: A review of start-up success stories
Abstract:
A great deal of business ideas never makes it to the end due to a wide range of problems that extend from the flawed conception of the idea to the failure to capture investment for their enterprise. The objective of this study is to analyze the causes of failure of start-ups and then interview successful entrepreneurs turned into small business owners to derive the causes of success of start-ups. Three interviews to small business owners were conducted to collect data on market and technology risks and difficulties faced in turning their project into a business. There were three main conclusions taken from the interviews: That all successful entrepreneurs were motivated to start the enterprise due to finding a real market need first and then devising a product/service to respond to that market need; that the vision of the entrepreneurs for their enterprise did not change substantially since the foundation of the company; that among the companies there were different levels of innovation being implemented that depend on company’s business model. These three conclusions can be summed up into the following: Any enterprise to endure must answer to a real market need, building its vision around those market necessities and adjusting the level of innovation according to market demands.
Francisco Cascalho is a Master Student of Mechanical Engineering from the Faculty of Sciences and Technology – Nova University of Lisbon – Portugal. He recently finished his master thesis on entrepreneurship. His research interests are in the areas of entrepreneurship and problem-solving using various methodologies.
Helena Navas has received a PhD from the NOVA School of Science and Technology – Universidade NOVA de Lisboa – Portugal. She is currently Assistant Professor at the Department of Mechanical and Industrial Engineering of the NOVA School of Science and Technology – Portugal and researcher at UNIDEMI. Her research interests are in the areas of innovation, continuous improvement, quality, and process management.
Fernanda Llussá has received a PhD from the University of California, Los Angeles (UCLA). She is currently Assistant Professor at the Applied Social Sciences Department of the NOVA School of Science and Technology – Portugal. Her research interests are in the areas of entrepreneurship, economic growth, regional and national policies.
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Entrepreneurs, market need, start-up failure, innovation
