From Startup to Scale Up: The Key Challenges

Abstract

The present study was an effort to identify the various impediments faced by startups in scaling up their business. The study also attempted to find the various factors that create a stumbling block for the new ventures to grow. The study was principally based on primary data and the essential primary data were collected from startup companies in Karnataka. A sample of 357 startup companies were selected using simple random sampling. To decipher the information regarding various impediments faced by startups in scaling up their businesses, survey method with structured questionnaire was used. Factor analysis was used to group various factors which are most inter-correlated with each other. Accordingly, we have logically labelled the factors as utilitarian and judicial factors. Further, to check the influence of independent variables (age of the founder, age of the company, and prior experience of the founder) on utilitarian and judicial factors ANOVA was used. The results of ANOVA show that the utilitarian factors are highly influenced by the age of the founders, age of the startups, and prior experience of the founders. The study successfully unwinds the factors that are significant for scaling up of startups to presume unattainable growth to build economic prosperity.