Indian Journal of Industrial Relations: Economics & Social Dev.

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An Exploration into the Decline & Fall of Tech Start-ups


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1 Assistant Professor (OB & HR), Indian Institute of Management Shillong, Meghalaya, India
     

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In the first three years, 80 percent of new businesses fail. Ninety percent of venturefunded start-ups fail to create substantial profits. The Paper investigates start-up failure s through the perspective of the ‘need for start-up’ and the resulting failure in sales. Wrong market perception, running out of money due to high operational expenditures, inadequate market research, technical/product difficulties, bad sales and marketing, and trouble competing are some of the major causes of technological start-up failures. The research intends to analyze and find the primary causes for the failure of tech start-ups; the elements that entrepreneurs should consider before forming a firm; and the relationships between these elements and startup longevity.
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  • An Exploration into the Decline & Fall of Tech Start-ups

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Authors

Ashutosh Bishnu Murti
Assistant Professor (OB & HR), Indian Institute of Management Shillong, Meghalaya, India

Abstract


In the first three years, 80 percent of new businesses fail. Ninety percent of venturefunded start-ups fail to create substantial profits. The Paper investigates start-up failure s through the perspective of the ‘need for start-up’ and the resulting failure in sales. Wrong market perception, running out of money due to high operational expenditures, inadequate market research, technical/product difficulties, bad sales and marketing, and trouble competing are some of the major causes of technological start-up failures. The research intends to analyze and find the primary causes for the failure of tech start-ups; the elements that entrepreneurs should consider before forming a firm; and the relationships between these elements and startup longevity.

References