Skip to main content
SpringerLink
Log in

An Integrative Framework for Startups at Early Stage: Promoting Evidence-Based Design and Evaluation in Early Stage Startups

  • Conference paper
  • First Online:
Research and Innovation Forum 2020 (RIIFORUM 2020)

Part of the book series: Springer Proceedings in Complexity ((SPCOM))

Included in the following conference series:

  • 740 Accesses

Abstract

Startups sector, especially those more technological, but also those who have contributed new business models, has led to and driven innovation and growth in recent economic history. At the same time, it is well recognized that while overall startup contribution is crucial, the high risk and reward strategy followed by these startups has significant failure rates, with mortality rates around 90% before three years and a low proportion of successful startups. Despite this high percentage of failures, the literature tends to focus on successful startups and quantitative studies that seek determinants of success, but the literature is also starting to appear lately, the many lessons behind failure by examining the stories of failed initiatives. Entrepreneurial strategy can be described by different frameworks and different dimensions, and despite all the literature in the startups topic, we find a gap identified in the creation of a model that helps to follow a structured business development strategy in the early stage, learning to prioritize efforts based on right decisions in its strategy to enable the company to survive the early stage. This work aims to fill this gap and contribute to the literature by providing scalable, repeatable methodology that can be applied to databases of both failed and successful startups that passed the early stage to jump into the growth stage.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. D.J. Storey, The Ten Percenters. Fourth Report: Fast Growing SMEs in Great Britain (Deloitte & Touche Tohmatsu, London, 1998)

    Google Scholar 

  2. P. Nightingale, A. Coad, Muppets and gazelles: political and methodological biases in entrepreneurship research. Ind. Corp. Chang. 23, 113–143 (2014)

    Article  Google Scholar 

  3. D. Frederiksen, A. Brem, How do entrepreneurs think they create value? A scientific reflection of eric ries’ lean startup approach. Int. Entrep. Manag. J. 13, 169–189 (2017)

    Article  Google Scholar 

  4. O. Amat, Predicción del éxito o del fracaso de una empresa en base a variables cualitativas y cuantitativas, Tesis doctoral, Universidad Autónoma de Barcelona, 1990

    Google Scholar 

  5. E.I. Altman, Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. J. Finance 23(4), 589–609 (1968)

    Article  Google Scholar 

  6. W.H. Beaver, Financial ratios as predictors of failure. J. Account. Res. 4, 71–111. (1966)

    Google Scholar 

  7. L. Arne, K.T.L. Kalleberg, Gender and organizational performance: determinants of small business survival and success. Acad. Manag. J. 34(1), 136–161 (1991)

    Google Scholar 

  8. J. Everett, J. Watson, Small business failure and external risk factors. Small Bus. Econ. 11, 371–390 (1998)

    Article  Google Scholar 

  9. D. Seshadri, Understanding new venture failure due to entrepreneur-organization goal dissonance. Vikalpa 2007(32), 55–74 (2007)

    Article  Google Scholar 

  10. K.M. Hmieleski, D.A. Lerner, The dark triad and nascent entrepreneurship: an examination of unproductive versus productive entrepreneurial motives. J. Small Bus. Manag. 54, 7–32 (2016)

    Article  Google Scholar 

  11. J. Cope, Entrepreneurial learning from failure: an interpretative phenomenological analysis. J. Bus. Ventur. 604–623 (2011)

    Google Scholar 

  12. Y. Vaillant, E. Lafuente, Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity? Entrep. Reg. Dev. 2007(19), 313–337 (2007)

    Article  Google Scholar 

  13. A.W. Mackelprang, M. Habermann, M. Swink, How firm innovativeness and unexpected product reliability failures affect profitability. J. Oper. Manag 38, 71–86 (2015)

    Article  Google Scholar 

  14. S. Dutta, T.B. Folta, A comparison of the effect of angels and venture capitalists on innovation and value creation. J. Bus. Ventur. 31, 39–54 (2016)

    Google Scholar 

  15. M. Porter, Corporate Strategy (New York, NY, 1980)

    Google Scholar 

  16. R.E. Miles, C.C. Snow, Organizational Strategy, Structure, and Process (McGraw-Hill, New York, NY, 1978)

    Google Scholar 

  17. D. Miller, P.H. Friesen, Organizations: A Quantum View (Prentice-Hall, Englewood Cliffs, NJ, 1984)

    Google Scholar 

  18. G.N. Stock, C. McDermott, M. McDermott, Early stage venture strategy and the survival of nascent entrepreneurial firms: a sand cone model approach. IEEE Eng. Manage. Rev. 46(3), 108–116 (2018)

    Article  Google Scholar 

  19. M. Cantamessa, V. Gatteschi, G. Perboli, M. Rosano, Startups’ roads to failure. Sustainability 10(7), 2346 (2018)f

    Google Scholar 

  20. A. Osterwalder, Y. Pigneur, Business model generation. a handbook for visionaries, game changers and challengers; Wiley: Hoboken, NJ, USA (2010)

    Google Scholar 

  21. A.V. Roth, Operations as marketing: a competitive service strategy. J. Oper. Manag. 10(3), 303–328 (1991)

    Article  Google Scholar 

  22. J. Bruderl, P. Preisend orfer, R. Ziegle, Survival chances of newly founded business organizations. Am Sociol Re, 57(2), 227–242 (1992)

    Google Scholar 

  23. J.P.J. De Jong, O. Marsili, Founding a business inspired by close entrepreneurial ties: does it matter for survival? Entrep. Theory Pract. 39(5), 1005–1025 (2015)

    Article  Google Scholar 

  24. E.A. Morse, S.W. Fowler, T.B. Lawrence, The impact of virtual embeddedness on new venture survival: overcoming the liabilities of newness. Entrep. Theory Pract. 31(2), 139–159 (2007)

    Article  Google Scholar 

  25. P. Stenholm, M. Renko, Passionate bricoleurs and new venture survival. J. Bus. Ventur. 31, 595–611 (2016)

    Article  Google Scholar 

  26. C.G. Brush, P.A. Vanderwert, A comparison of methods and sources for obtaining estimates of new venture performance. J. Bus. Ventur. 7, 157–170 (1992)

    Google Scholar 

  27. V. Collewaert, Angel investors’ and entrepreneurs’ intentions to exit their ventures: a conflict perspective. Entrep. Theory Pract. 36(4), 753–779 (2012)

    Google Scholar 

  28. M. Parra Alviz, G. Rubio Guerrero, Distinctive factors of entrepreneurship that led to success: case studies in entrepreneurs from Ibagué, Tolima. Rev. Cient. Pensam Gestión [Internet] 43, 89–127 (2017)

    Article  Google Scholar 

  29. R. Curtin, Panel Study of Entrepreneurial Dynamics II Screener þ Wave A—Wave F Codebook (Survey Research Center, University of Michigan, Ann Arbor, MI, 2011)

    Google Scholar 

  30. E. Piva, C. Rossi-Lamastra, Human capital signals and entrepreneurs’ success in equity crowdfunding. Small Bus. Econ. 51(3), 667–686 (2018)

    Article  Google Scholar 

Download references

Conflict of Interest Statement

The author declares that there is no possible conflict of interest regarding the research, authorship, and/or publication of this article.

Funding The author has not received any financial support for the research, authorship and/or publication of this article.

Author information

Authors and Affiliations

  1. UOC—Universitat Oberta de Catalunya, Avinguda del Tibidabo, 39, 08045, Barcelona, Spain

    Francesc Font Cot, Pablo Lara Navarra & Enric Serradell-López

Authors
  1. Francesc Font Cot
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Pablo Lara Navarra
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Enric Serradell-López
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Francesc Font Cot .

Editor information

Editors and Affiliations

  1. Research & Innovation Institute (Rii), Warsaw, Poland

    Anna Visvizi

  2. Effat University, Jeddah, Saudi Arabia

    Miltiadis D. Lytras

  3. Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah, Saudi Arabia

    Naif R. Aljohani

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Font Cot, F., Lara Navarra, P., Serradell-López, E. (2021). An Integrative Framework for Startups at Early Stage: Promoting Evidence-Based Design and Evaluation in Early Stage Startups. In: Visvizi, A., Lytras, M.D., Aljohani, N.R. (eds) Research and Innovation Forum 2020. RIIFORUM 2020. Springer Proceedings in Complexity. Springer, Cham. https://doi.org/10.1007/978-3-030-62066-0_34

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-62066-0_34

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-62065-3

  • Online ISBN: 978-3-030-62066-0

  • eBook Packages: EducationEducation (R0)

Publish with us

Policies and ethics

Search

Navigation