Comparing Bootstrapping High-Tech Start-Up Companies in the West and in a Transition Country

Dragana Popovic Renella, Vojin Senk and Fuada Stankovic
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Dragana Popovic Renella: SENIS AG, Zug, Switzerland
Vojin Senk: University of Novi Sad, Serbia
Fuada Stankovic: University of Novi Sad, Serbia

International Journal of Management Science and Business Administration, 2020, vol. 7, issue 1, 7-14

Abstract: This is a study of the process of the development of high-tech start-up companies through the mechanisms of bootstrapping in two extremely different environments: the one of highly industrialized countries, such as USA and Switzerland; the other of Serbia, which is a post-communist transition country with particular difficulties. The research method is the analysis of case studies. One case study of US and two of Swiss start-ups build the base for the analysis. All three cases show common patterns: from the very beginning, these companies sell R&D services in their fields of expertise; and using the cash from these early sales, and the information feedback from cooperation with the early customers, they develop their resources and, eventually, also their own high-tech products. The essential feature of this process is the selling of R&D services and the first products in the neighborhoods. Then also two cases of high-tech start-ups from Serbia are analyzed. Both Serbian start-ups are founded in partnership with small high-tech companies from highly industrialized countries (Switzerland and Germany). The Western partners use their reputations and contacts to enable the early sales of the Serbian start-ups in the industrialized countries. This is crucial for the Serbian start-ups, because they have no domestic market for R&D services. Apart of this element, all other essential patterns of the Serbian cases are very similar to those of the Western cases.

Keywords: Bootstrapping; High-tech start-up; Serbia; Switzerland; Transition country (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijmsba:v:7:y:2020:i:1:p:7-14

DOI: 10.18775/ijmsba.1849-5664-5419.2014.71.1001

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