Critical growth factors of ICT start‐ups

Abstract

PurposeThe present study in this paper seeks to deal with the crucial topic of growth determinants for ICT start‐ups. In this emerging industry high firm birth rates go hand in hand with a great risk of failure and only one firm out of three survives the first three years.Design/methodology/approachThe paper analyzes 220 start‐ups of the ICT service sector and verifies the influence of individual and organisational factors on growth.FindingsThe paper finds that human capital and working experience have no significant impact on the success of young ICT firms.Originality/valueThe paper shows that critical growth factors are mostly financing and customer related variables (firm size and capital at start‐up, customer structure, regional market orientation, etc.).

Emerging (internet) industry and agglomeration: Internet entrepreneurs coping with uncertainty

“…The third category focuses on exogenous factors such as financing and customer related variables (Lasch et al 2007) or institutions (Murtha et al 1996). For example, Schill and Zhou (2001) study the financial side of emerging industries in discussing the difficulties in estimating economic values of new types of activities and Maksimovic and Pichler (2001) research different types of funding and financing of emerging industries depending on the risk involved in the investment.…”

A Survivability Model for Saudi ICT Startups

“…According to previous studies ( [11], [13], [14], [15], [16], [17], [18], [19] , [20], [21], [22], [23], [24], [25], [26]) the variance in DV depends on three groups of factors (Independent variables IV) as illustrated below: …”

Critical Success Factors for Vietnamese Software Companies: A Framework for Investigation

“…Finance is an important factor to support company in investing and keeping its business.With analyzed results of 220 "start-up" Information and Communication Technology (ICT), Lasch, Roy &Yami (2007) state that finance has a significant on the success of young ICT firms. The financial investment of IT companies is much lower than that of other companies (Dellmour, 2006).…”