Reasons Behind The Failure of Startups

Citation

Saini, Nitin. (2022). Reasons behind the failure of startups (Master’s independent study). Bangkok: Siam University.

Abstract

Researchers have actively worked on studies for failure rates and causes among startups as 90% of startups fail within five years of establishment. It is essential to understand the underlying causes behind the failures. The purpose of the study was to determine the cause of failure and support existing and aspiring startups to create policies and adopt approaches to sustain their business in competitive market conditions. The paper aimed to discern the factors that contribute to startups’ failure and assessed several reasons according to internal, external, and behavioral factors. These factors have highlighted challenges including financial, regulatory, personality-related, available capital, market need, experienced and professional teams, and other entrepreneurial challenges. This documentary research was based on the qualitative secondary data analysis A three-dimensional framework was proposed to be used to understand how internal factors can be optimized, external factors can be controlled, and behavioral factors can be controlled to save startups from failing. Moreover, the research also seeks to point out the factors that helped the success of several startups across the world.

Keywords: startup failure, causes of startup failure, reasons for startup failure, reasons to exit, startups.

Reasons Behind The Failure of Startups

Master of Business Administration (International Program), Siam University, Bangkok, Thailand