Exploring the Dynamics of Startup Failure and Its Destructive Impact in Emerging Economies: Insights from the Kosovo Startup Ecosystem

Besnik Avdiaj (), Gentrit Berisha () and Besnik Krasniqi ()
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Besnik Avdiaj: University of Prishtina
Gentrit Berisha: University of Prishtina
Besnik Krasniqi: University of Prishtina

Chapter Chapter 8 in Destructive Entrepreneurship in Emerging Markets, 2025, pp 117-143 from Springer

Abstract: Abstract While most of the startups are doomed to fail, little has been done to investigate the aftermath. This deficiency of research attention towards startup failure outcomes is even more emphasised in emerging contexts, where startups play a pivotal role in fostering innovation, employment and economic growth. Therefore, this chapter explores the dynamics of startup failure in Kosovo startup ecosystem, a post-conflict and emerging country. It scrutinises the intricacies of failure and its destructive consequences across multiple levels. Utilising a qualitative method, we extracted data and information from four incubation centres and examined them through thematic analysis, based on the established frameworks on entrepreneurial failure. The results are categorised in individual, organisational, economic and social levels of impact. Our chapter’s research contributions are fourfold. We conceptualised and disentangled startup failure from entrepreneurial failure; extended the current framework of studying entrepreneurial failure within startup ecosystems; investigated startup failure in emerging contexts; and recognised the role of incubation centres as significant sources of information in startup research. Practical implications offer insights and recommendations for entrepreneurs and startup teams, investors, suppliers, customers and the overall society, in preventing and handling disastrous situations of failure. On top of that, for the first time we offer a reference on startup failure metrics in Kosovo which appeal for more awareness. Limitations conclude the chapter with potential future research directions.

Keywords: Entrepreneurial failure; Startup failure; Startup ecosystem; Destructive entrepreneurship; Emerging economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-0112-7_8

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DOI: 10.1007/978-981-96-0112-7_8

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