Critical Success Factors of Tech-Based Disruptive Startup Ecosystem in Bangladesh

Purpose: The aim of this paper is to explore the startup ecosystem values which critically underpin and formulate the success factors of the young tech-based disruptive startups, leading to the overall success and sustainability of the entrepreneurship ecosystem for urban youth governing the development of the country.

Background: Although Bangladesh has the potential for tech-based business opportunities, there are lots of challenges in its existing entrepreneurship ecosystem which is devoid of the right blend of values of the stakeholders. In the context of Isenberg (2012) model of entrepreneurship ecosystem, the interconnected domains, e.g., markets, finance, human capital, policy, culture, and education set their own values to scope out their own success through their respective roles and responsibilities in the ecosystem. The values for which these domains of entrepreneurship ecosystem coexist, and based on that the success narratives for which more and more tech-based disruptive startup entrepreneurs enter the ecosystem with new ideas and spirits, are critically and symbiotically bonded together for a matching scenario of overall success and sustainability of the entrepreneurship ecosystem.

Approach: We have designed the framework of our study based on the relevant value creation concept of Stam (2015) through entrepreneurial activities that depend upon overall entrepreneurship ecosystem and other relevant factors. Our approach for this study is inductive, followed by the grounded theory and theoretical sampling process. For this, we are underpinning the research with the Human-Centered Design (HCD) technique by taking into account the narratives of the various stakeholders of the startup ecosystem in Bangladesh including the tech-based disruptive startup entrepreneurs. This means that our research is qualitative, and done using both the primary and secondary sources, where we have applied laddering technique (n=10, l=30) and content analysis method (n=15), respectively, for data triangulation.

Findings: Through this research, it has been found out that, the personal values of the startup entrepreneurs are not only linked to the ventures that they have co-created, but are also driven by the startup stakeholder values prevailing in the startup ecosystem. This value-venture nexus constitutes the Critical Success Factors (CSFs) of tech-based disruptive startup ecosystem in urban Bangladesh, and thus delinking the “value” from the “venture” is not the path of overall success of the ecosystem. In this context, “survival” connected to technology-centric innovations and revolutions, “optimism” connected to recognizing and working on the areas of passion, and “legacy” connected to contribution to the society – altogether define the CSFs. It should be made sure that this “value-venture” orientation is kept connected to ensure the sustainability of the tech-based disruptive startup ecosystem in Bangladesh.

Value: This research adds to the knowledge about the importance of “value-based entrepreneurs” that can lead towards the overall success of the ecosystem. It will contribute to a deeper degree of knowledge for stakeholders and policy makers in the development of supporting infrastructures and resources, both at public and private domains. If this is done holistically, it will ensure sustainable development of urban youth and the economy.

Funding note: This research has been conducted through the “EMK-Junction Entrepreneurship Research Fellowship” programme and has been funded by the American Edward M. Kennedy Center for Public Service and the Arts (www.emk.com.bd).