NAVIGATING STARTUP FAILURES: A CASE STUDY-BASED ANALYSIS OF THE REASONS BEHIND STARTUP FAILURES

Abstract

This paper investigates the reasons behind startup failures and identifies the factors influencing the progress of startups. The study focuses on three startups in Delhi NCR that ceased operations within five years. Key determinants of failure include the time taken to develop a minimum viable product, the timeline for revenue realization, the founders' complementary skill sets, their age and domain expertise, personality traits, financial independence, and openness to mentorship during critical phases.

A literature review on startup failures and an evaluation of the three failed startups were conducted to gain comprehensive insights. The study highlights how various factors influence a startup's survival or success and provides actionable recommendations for mitigating failure risks. Through an exploratory and inductive case study in the Delhi NCR area, multiple factors affecting startup progress were identified, varying significantly across startups.

However, the research underscores that all these factors are crucial and each must meet a minimum standard of performance to avoid adverse impacts on a startup's progress. The findings aim to contribute to a deeper understanding of startup dynamics and support the development of a more resilient entrepreneurial ecosystem.