AMC Indian Journal of Entrepreneurship

Open Access Open Access  Restricted Access Subscription Access

Critical Success Factors for Startups : A Study on Mumbai-Pune Region, Maharashtra, India


Affiliations
1 Director, Innovation, Incubation & Linkages, Centre for Innovation Incubation & Linkages, Savitribai Phule, Pune University, Ganeshkhind Road, Pune - 411 007, Maharashtra, India
2 Assistant Professor, Economics Department, Gokhale Institute of Politics and Economics, (Deemed to be University), 846, BMCC Road, Fergusson College Campus, Deccan Gymkhana, Pune - 411 004, Maharashtra, India

   Subscribe/Renew Journal


India featuring in the top five largest economies in the world relies heavily on the success of startup business enterprises for continuous economic growth and employment generation. Government of India through Startup India Initiative since 2015 has increased its focus on creating an inclusive environment for the growth and success of Startup Business Enterprises. This has shown positive outcome in terms of number of new startups and the amount of investment flown to this crucial sector of the economy. The present study was an attempt to understand the key success factors for startup in India through a study on selected startups in Mumbai-Pune region of western India, the traditional manufacturing and financial capital of India. Our analysis using the various ranking methods and Analytical Hierarchy Process helped us to identify entrepreneurship as the major success factor for new startups in India. This has larger policy implication for the promotion of entrepreneurship in this crucial sector.

Keywords

Entrepreneurship, India, Startups, Success Factors.

Paper Submission Date : April 5, 2021 ; Paper Sent Back for Revision : May 16, 2021 ; Paper Acceptance Date : June 5, 2021.

User
Subscription Login to verify subscription
Notifications
Font Size

  • Alice, M. & Ravallion, M. (2001). Wealth distribution and self-employment in a developing economy. C.E.P.R. Discussion Papers 3026. https://ideas.repec.org/p/cpr/ceprdp/3026.html

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

  • Banerjee, A. V., & Newman, A. F. (1993). Occupational choice and the process of development. Journal of Political Economy, 101(2), 274–298. http://www.jstor.org/stable/2138820

  • Blank, S. (2010). Why startups are agile and opportunistic–pivoting the business model. Steve Blank.

  • Brem, A. (2008). The boundaries of innovation and entrepreneurship. Wiesbaden, Erlangen Nürnberg : Springer.

  • Brown, R. (2011). The determinants of high growth entrepreneurship in the Scottish food and drink cluster. In G. Alsos, S. Carter, E. Ljunggren, & F. Welter (Eds.). The handbook of research on entrepreneurship in agriculture and rural development. Edward Elgar : Cheltenham. https://doi.org/10.4337/9780857933249

  • De Mel, S., McKenzie, D. J., & Woodruff, C. (2009). Measuring microenterprise profits : Must we ask how the sausage is made? Journal of Development Economics, 88(1), 19–31. https://doi.org/10.1016/j.jdeveco.2008.01.007

  • Disney, R. & Gathergood, J. (2009). Housing wealth, liquidity constraints and self-employment. Labour Economics, 16(1), 79–88. https://doi.org/10.1016/j.labeco.2008.05.002

  • Dunn, Thomas & Douglas Holtz-Eakin. (2000). Financial capital, human capital, and the transition to self-employment, evidence from intergenerational links. Journal of Labor Economics, 18(2), 282–305. https://doi.org/10.1086/209959

  • Firkin, P. (2003). Entrepreneurial capital: A resource-based conceptualization of the entrepreneurial process (Working Paper No. 7). Labour Market Dynamics Research Programme, Massey University, Auckland. https://guides.library.sc.edu/citation/apa

  • Gelderen, M., Brand, M., Praag, M., Bowedes, W., Poutsma, E., Gils, A. (2008). Explaining entrepreneurial intentions by means of the theory of planned behaviour. Career Development International, 13(6), 538–559. https://doi.org/10.1108/13620430810901688

  • Gražina, S., Remeikienė, R., & Dumčiuvienė, D. (2010). Concept of self employment. Economics and Management, 15, 262–274.

  • Holland, J. L. (1997). Making vocational choices : A theory of vocational personalities and work environments. Open Journal of Social Sciences, 5(2), 3rd Ed. Psychological Assessment Resources, Odessa.

  • Kanda, R. & Handa, H. (2018). The impact of service ethics on organisational competitiveness in India–A primary approach to the startup and emerging service enterprises. Journal of Business Ethics, 7(1), 13–22. http://dx.doi.org/10.26643/think-india.v21i2.7763

  • Kautonen, T., Gelderen, M., & Fink, M. (2015). Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrepreneurship Theory and Practice, 39(3), 655–674. http://dx.doi.org/10.1111/etap.12056

  • Kim, B., Kim, H., & Jeon, Y. (2018). Critical success factors of a design startup business. Sustainability, 10, 2981.

  • Krueger, N. F. J. R., Reilly, M. D., Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5–6), 411–432. https://doi.org/10.1016/S0883-9026(98)00033-0

  • Lent, R. W. (2005). A social cognitive view of career development and counseling. In S. D. Brown & R. W. Lent (Eds.). Career development and counselling : Putting theory and research to work, pp. 101–127. Hoboken, NJ : John Wiley.

  • Lent, R. W., Brown, S. D., & Hackett, G. (1994). Toward a unifying social cognitive theory of career and academic interest, choice, and performance. Journal of Vocational Behavior, 45(1), 79–122. https://doi.org/10.1006/jvbe.1994.1027

  • Lin, X., Carsrud, A., Jagoda, K., & Shen, W. (2013). Determinants of entrepreneurial intentions: Applying western model of the Sri Lanka context. Journal of Enterprising Culture, 21(2), 153–174. https://doi.org/10.1142/S0218495813500076

  • Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. Oxford, UK: Oxford University Press. 10.1093/acprof:oso/9780195187526.001.0001

  • Mesnard, A. & Ravallion, M. (2006). The wealth effect on new business startups in a developing economy. Economica, 73(291), 367–392.

  • Nandram, S. S., & Boemans, M. (2001). De beste ondernemer : Condities voor ondernemerssucces. Breukelen: Universiteit Nyenrode.

  • NASSCOM. (2019). Indian tech startup eco system : Leading techs in 20s. New Delhi.

  • Ngai, E. W. T. (2003). Selection of websites for online advertising using AHP. Information and Management, 40, 233-242. https://doi.org/10.1145/2554850.2555067

  • Obschonka, M., Silbereisen, R. K., & Schmitt-Rodermund, E. (2010). Entrepreneurial intention as developmental outcome. Journal of Vocational Behavior, 77, 63–72. https://doi.org/10.1016/J.JVB.2010.02.008 27) Page, L. F. & Donohue, R. (2004). Positive psychological capital : A preliminary exploration of the construct. Working Paper Series, Department of Management. October. 1–10.

  • Parker, S. C. (2004). The economics of self-employment and entrepreneurship. Cambridge University Press : Cambridge. https://doi.org/10.1017/CBO9780511493430

  • Parker, S. C. (2005). The economics of entrepreneurship : What we know and what we don't. Foundations and Trends in Entrepreneurship, 1(1), 1–54. http://dx.doi.org/10.1561/0300000001

  • Poschke. (2013). Who becomes an entrepreneur? Labor market prospects and occupational choice. Journal of Economic Dynamics and Control, 37(3), 693–710. https://doi.org/10.1016/j.jedc.2012.11.003

  • Ramos-Rodríguez, A. R., Medina-Garrido, J. A., Lorenzo-Gomez, J. D., & Ruiz-Navarro, J. (2010). What you know or who you know? The role of intellectual and social capital in opportunity recognition. International Small Business Journal, 28(6), 566–582. https://doi.org/10.1177%2F0266242610369753

  • Rauch, A. (2000). Success Factors of Small and Medium Sized Enterprises (PhD Thesis). Universiteit van Amsterdam, Amsterdam.

  • Rauch, A. J. (2001). Success factors of small & medium sized enterprises (PhD Thesis). University of Amsterdam. https://dare.uva.nl/search?identifier=3cf9fb9e-fc80-4b79-b56e-337640f8752c

  • Ries, E. (2012). The lean startup : How today’s entrepreneurs use continuous innovation to create radically successful businesses. Journal of Product Innovation Management, 29(3), 508–509. NY : Crown Publishing Group. https://doi.org/10.1111/j.1540-5885.2012.00920_2.x

  • Saaty, T.L. (1980). The Analytical Hierarchy Process. McGraw- Hill, New York, NY.

  • Saaty, T.L., 1990). How to make a decision : The Analytic Hierarchy Process. European Journal of Operational Research, 48(1), 9–26. https://doi.org/10.1016/0377-2217(90)90057-I

  • Salamzadeh, A. & Kesim, H.K. (2015). Startup companies : Life cycle and challenges. The 4th International Conference on Employment, Education and Entrepreneurship. Belgrade, Serbia.

  • Schlaegel, C. and Koenig, M. (2014). Determinants of entrepreneurial intent : A meta-analytic test and integration of competing models. Entrepreneurship Theory and Practice, 38(2), 291–332. https://doi.org/10.1111/etap.12087

  • Sharma, S., Raj, M., & Gandhi, T. (2018). Challenges and issues faced by startup companies in India [Conference Presentation]. 16th AIMS International Conference on Management, (pp. 109–113).

  • Tervo, H., & Haapanen, M. (2010). The nature of self-employment : How does gender matter ? International Journal of Entrepreneurship and Small Business, 9(3), 349–371. https://doi.org/10.1504/IJESB.2010.031926

  • Tsai, K., Chang, H., & Peng, C. (2016). Extending the link between entrepreneurial self-efficacy and intention : A moderated mediation model. International Entrepreneurship and Management Journal, 10, 623–641. https://doi.org/10.1007/s11365-014-0351-2

  • Udo, G. G. (2000). Using Analytic Hierarchy process to analyze the information technology outsourcing decision. Indian Management and Data Systems, 100(9), 421–429. https://doi.org/10.1108/02635570010358348

  • Zhang, Y., Duysters, G., & Cloodt, M. (2014). The role of entrepreneurship education as a predictor of university students’ entrepreneurial intention. International Entrepreneurial and Management Journal, 10, 623– 641. https://doi.org/10.1007/s11365-012-0246-z


Abstract Views: 487

PDF Views: 0




  • Critical Success Factors for Startups : A Study on Mumbai-Pune Region, Maharashtra, India

Abstract Views: 487  |  PDF Views: 0

Authors

Apoorva Palkar
Director, Innovation, Incubation & Linkages, Centre for Innovation Incubation & Linkages, Savitribai Phule, Pune University, Ganeshkhind Road, Pune - 411 007, Maharashtra, India
K. S. Hari
Assistant Professor, Economics Department, Gokhale Institute of Politics and Economics, (Deemed to be University), 846, BMCC Road, Fergusson College Campus, Deccan Gymkhana, Pune - 411 004, Maharashtra, India

Abstract


India featuring in the top five largest economies in the world relies heavily on the success of startup business enterprises for continuous economic growth and employment generation. Government of India through Startup India Initiative since 2015 has increased its focus on creating an inclusive environment for the growth and success of Startup Business Enterprises. This has shown positive outcome in terms of number of new startups and the amount of investment flown to this crucial sector of the economy. The present study was an attempt to understand the key success factors for startup in India through a study on selected startups in Mumbai-Pune region of western India, the traditional manufacturing and financial capital of India. Our analysis using the various ranking methods and Analytical Hierarchy Process helped us to identify entrepreneurship as the major success factor for new startups in India. This has larger policy implication for the promotion of entrepreneurship in this crucial sector.

Keywords


Entrepreneurship, India, Startups, Success Factors.

Paper Submission Date : April 5, 2021 ; Paper Sent Back for Revision : May 16, 2021 ; Paper Acceptance Date : June 5, 2021.


References





DOI: https://doi.org/10.17010/amcije%2F2021%2Fv4i2-3%2F164698