Business Research Methods

To study the reasons behind failure of start-ups in India

Course Co-Ordinator: Mrs. Sujata Mukherjee

Group 6 Division H
Sagar Nadkarni H038
Pranay Kothari H027
Shivam Mathur H034
Shreyans Talawat H061
Vrushank Paun H045
Shubhransh Misra H036
Research on reasons behind failure of start-ups in India

Problem statement
What are the reasons behind the failure of start-ups in India?

Literature review
 The literature gives insight on the reasons of software product start-ups failure.
Failures of execution in sales, marketing and operations are often responsible but it is
not considered in this paper.
 Reasons could be developers’ inability to solve technical issues, neglecting
impossibility issues of successful product, poor strategic plan, insufficient funding, etc.
 Other issues like unskilled human resources which cannot deliver customer
requirement, over commitment because of overlooking reality, poor marketing
strategy, etc.
 If we talk other reasons which are not in paper, then they could be inability to predict
future problems and market trend, lake of adaptability to new ideas in founders, no
motivating work culture, insufficient resources, lack of synchronization in internal
functions of company, etc.

Problem questions

 Do start-ups have a unique value proposition and conducive business conditions to

start with?
 Do start-ups have the necessary support of funding at different phases?
 Do start-ups have right mix of people to form competitive strategies to defend and
succeed in long run?
Research objectives

 Determine whether the professional experience of the start-up managers will

translate into success or failure of start-ups.
 Determine how funding affects success rate of a start-ups.

Research questions

 Identify the different factors affecting the setting up of business?

 Determine the stages of business where funding is important and what can be the
source of those funding?
 List down individual qualities necessary so as to build the correct team for sustaining
business for a long time?

Research hypothesis

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  There is a significant relationship between professional experiences in
entrepreneurship of the start-up managers and the success of start-up. (Based on
Research Objective 1).
 A start-up which receives regular funding will be more successful as compared to a
start-up which receives irregular funding. (Based on Research Objective 2).

Conceptual framework

Different factors considered for start ups

HR Marketing factors Financials Government

 Right Team  Competition  Venture Funding  Government

 Improper Marketing Policies
 Idea Generation
 Pricing Strategy
 Market need
 Product Quality

Variables for the study

Types of factors affecting business

 Funding
Funding at different phases of start-up is responsible for sustainability of business in
long run.

 Professional experience of start-up manager

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 The extent of entrepreneurial experience was measured with the summed four-item
scale that measured both subjective and objective indicators. The subjective item
was self-report item that asked respondents to rate their past experience. The three
objective items are:
1) At least one start-up which is in existence for at least 2 years.
2) I have 3 or more start-ups with at least one of them is profitable and on-going
entity.
3) I have significant carrier experience and I am familiar with new venture
formation.

 Operationalization of Variables
 Funding- Ratio Scale: Finding gathered by different start-ups
would be compared.
 Professional experience of start-up manager- Ordinal Scale:
Experience of various start-up managers would be compared.

 Sampling Techniques
1) Funding-Questionnaires floated and statistics available on databases
2) Professional experience of start-up manager -questionnaires

Data analysis
SPSS

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Questionnaire:

Name of Startup/Enterprise

Location of Startup/Enterprise

Do you have any prior managerial experience?

Yes
No

If yes, how much experience do you have?

< 1 year
1-2 years
2-3 years
3 years +

In how many start-ups were you involved as founder or co-founder?

0
1
2
3 or more

What stage is your business currently at?

Pre-start up
1-18 months
18months-3 years
3 years +

Which of the following best describes the industry or primary business activity
that you are in?
Agriculture / Forestry / Fishing / Hunting
Manufacturing
Wholesale Trade
Retail Trade
Transportation / Warehousing
Information
Finance and Insurance

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 Real Estate / Rental / Leasing
Professional, Scientific, or Technical Services
Management of Companies and Enterprises
Educational Services
Health Care and Social Assistance
Arts, Entertainment, and Recreation
Accommodation and Food Services
Public Administration
Other Services

Are you a product player, service or mixed?

Product
Service
Mixed

How many people does your business employ?

Under 10
10-20
20-50
50-100
Over 100

Is it easy to find help/resources on starting your own business?

Yes
No

What will be your source for funding?

Government grants
Business loans
Angel investment
Friends/ family
Other

What are the obstacles that start-ups face?

Lack of Funding
Lack of managerial experience
Team composition
Not serving the need for the market

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Flawed Business model

Improper marketing

Wrong pricing

Others

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