Econometric Estimation of the Factors That Influence Startup Success

Carlos Díaz-Santamaría and Jacques Bulchand-Gidumal
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Carlos Díaz-Santamaría: Institute of Tourism and Sustainable Economic Development (TIDES), Campus de Tafira, University of Las Palmas de Gran Canaria, 35017 Las Palmas, Spain
Jacques Bulchand-Gidumal: Institute of Tourism and Sustainable Economic Development (TIDES), Campus de Tafira, University of Las Palmas de Gran Canaria, 35017 Las Palmas, Spain

Sustainability, 2021, vol. 13, issue 4, 1-14

Abstract: Technology startups are important regional economic engines that are recognized as drivers of sustainable economic growth. Understanding the factors that influence their success is of interest both to the scientific community and to practitioners. However, there is currently no consensus in the literature on how to define the success of a technology startup. Startup success has multiple dimensions and different theoretical approaches and empirical contexts. Therefore, in the present work, our aim is to identify ways of measuring the success of a technology startup. Using a review of the literature and interviews with entrepreneurs and venture capital investors, we identified two common success indicators: achieving significant revenue and obtaining financing. We then analyzed the factors that have the greatest impact on startup success using 340 startups. We used a multivariate model based on independent econometric estimates for each of the two ways of defining the success of a technology startup. The main conclusion is that there are four factors that have a significant influence on the two ways of measuring success: the location of the startup, the promoting partners’ dedication, the age of the company, and the existence of nonpromoting partners.

Keywords: success; entrepreneurship; startup; multivariate analysis; Spain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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