University of Twente Student Theses
The Failure of Start-ups in the Survival Stage in the Netherlands
Mohamed, Mazen (2024) The Failure of Start-ups in the Survival Stage in the Netherlands.
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| Abstract: | This study seeks to understand why many start-ups in the Netherlands prematurely exit after reaching the survival stage. The investigation examines this relationship, studying how start-ups cross what is popularly known as ‘the survival stage’ to become sustainable businesses while exploring how various success factors mature over time. In order to evaluate start-up developments and know their development stage(survival) position, two main perspectives must be incorporated. The first is the four-stage progression model, which includes Early-Stage Development, Growth(survival stage), Maturity, and Decline or Pivot. The second model is based on the start-ups coming out of the academic environment, where the focus of the analysis moves to integrate academic research and development with the real business (the survival stage) and such factors as project viability, networking, and the founders’ background in a network environment. By incorporating these models with Dutch start-ups in mind, this research evaluates start-ups’ survival using crucial factors, such as venture capital dynamics effects in general, venture capital specifically in the Netherlands, and future planning methods effects. The obstacles produced by these processes can lead to low performance, causing a start-up failure, so they are studied and used to predict why start-ups fail in the Netherlands at the survival stage. Furthermore, using the same factors of failure, the researcher wanted to know if these factors are present outside the Netherlands, so data was collected from interviews with employees from Egypt, the UK, and the Netherlands. The findings of this study show that the factors affecting start-ups at the survival stage are common across countries, but their practical implications and relative value vary in each country. As an example, the practical outcomes of venture capital mechanisms and future strategy methodologies differ in the Netherlands and Egypt due to different investor requirements that affect the growth and sustainability strategies of start-ups in each context. This knowledge is useful to the entrepreneurial ecosystem in the Netherlands since it offers reasons that will assist the entrepreneurs in planning for the survival stage, a stage at which most start-ups in the Netherlands fail. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics |
| Programme: | Business Administration BSc (56834) |
| Link to this item: | https://purl.utwente.nl/essays/104348 |
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