Advertisement

Failure in Startup Companies: Why Failure Is a Part of Founding

  • Claas TriebelEmail author
  • Claudius Schikora
  • Richard Graske
  • Sarah Sopper
Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

The purpose of this paper is to provide an overview of the reasons for the failure of a company foundation. For this purpose, the current studies in this area are discussed. These studies clearly show that the number of startup companies has declined in recent years. In addition, the number of startup companies is lower than the number of company closures. This raises the question of how the failure of company foundations can be avoided.

In the following, the individual studies are presented, in which possible causes for the failure of founding teams could be identified. The authors particularly examine studies on startup companies from which a typology of the failure of startups is derived. For the individual cells of this typology, examples are shown in detail below. Furthermore, it is investigated whether cultural differences of failure influence company foundations. The article finishes with conclusions for the practice, which should help future start-up companies not to commit the same mistakes.

References

  1. Álvarez, S., Beikler, S., & Rövekamp, M. (2016). Berlin verliert Titel als führende Start-up-Metropole. Retrieved March 29, 2017, from http://www.tagesspiegel.de/wirtschaft/investitionen-brechen-ein-berlin-verliert-titel-als-fuehrende-start-up-metropole/14020956.html
  2. AXA. (2015). AXA Studie “Innovationen und Unternehmensgründungen in Deutschland und in den USA”. Retrieved March 30, 2017, from https://www.axa.de/site/axade/get/documents/axade/AXA.de_Dokumente_und_Bilder/Unternehmen/Presse/Pressemitteilungen/Dokumente/2015/AXA-Studie-Innovationen-und-Unternehmensgruendungen-in-D-und-USA.pdf
  3. Beckett, S. (2006). Try again. Fail again. Fail better. Retrieved March 30, 2017, from http://www.economist.com/node/5624852
  4. Bruegel. (2013). The changing landscape of financial markets in Europe, the United States and Japan. Bruegel Working Paper 2013/02. Retrieved March 2, 2017, from http://bruegel.org/wp-content/uploads/imported/publications/WP_2013_02_01.pdf
  5. CB Insights. (2014). 204 Startup failure post-mortems. Retrieved March 28, 2017, from https://www.cbinsights.com/blog/startup-failure-post-mortem
  6. DIHK. (2014). Pioniergründer bringen frische Brise. Zahlen und Einschätzungen der IHK-Organisation zum Gründungsgeschehen in Deutschland. Retrieved March 28, 2017, from https://www.dihk.de/ressourcen/downloads/dihk-grunderreport-2014
  7. Gallup. (2014). Starved of financing, new businesses are in decline. Retrieved June 10, 2017, from http://www.gallup.com/businessjournal/175499/starved-financing-new-businesses-decline.aspx
  8. Global Entrepreneurship Monitor. (2016). Global report 2016/17. Retrieved June 10, 2017, from http://gemconsortium.org/report
  9. Gloeckler, P. (2015). We failed – Warum die Verleih App WHY own it nicht funktioniert hat. Retrieved April 20, 2015, from http://whyownit.com/blog/we-failed-warum-die-verleih-app-why-own-it-nicht-funktioniert-hat
  10. Hackmann, J. (2013). Die zwanzig besten Regionen: Wo Startups am besten gedeihen. Retrieved March 30, 2017, from http://www.computerwoche.de/a/wo-startups-am-besten-gedeihen,2529511
  11. Jaeger, T. (2003). Gründe für das Scheitern von Start-ups. Hamburg: Diplomica.Google Scholar
  12. Kaczmarek, J. (2001). StudiVZ – Holtzbrinck verschleudert Millionen. Retrieved March 30, 2017, from http://www.gruenderszene.de/exits/studivz-holtzbrinck-85-millionen
  13. Konrad Adenauer Stiftung. (2016). Deutsche StartUps greifen daher immer häufiger auf VC-Finanzierungen aus den USA zurück. Retrieved April 2, 2017, from http://www.kas.de/wf/doc/kas_29348-544-1-30.pdf?160114114853
  14. Kosoff, M. (2015). The 38 coolest startups in Silicon Valley. Retrieved March 30 2017, from http://www.businessinsider.com/the-38-coolest-startups-in-silicon-valley-2015-7
  15. Krüger, A. (2015). App gescheitert: Leihen ja, verleihen nein. Retrieved April 20, 2015, http://www.heute.de/sharing-economy-warum-verleih-app-why-own-it-gescheitert-ist-37461978.html
  16. Kulicke, M., & Kripp, K. (2013). Ergebnisse und Wirkungen des Förderprogramms EXIST-Gründerstipendium. Retrieved March 30, 2017, from http://www.exist.de/SharedDocs/Downloads/DE/Studien/Ergebnisse-Wirkungen-Foerderprogramm-Gruenderstipendium.pdf?__blob=publicationFile
  17. Loeffler, H. (2015). Es haben einfach zu wenig Leute Interesse gehabt, richtig mitzumachen. Retrieved May 22, 2015, from http://www.gruenderszene.de/allgemein/why-own-it-aus
  18. Lommer, I. (2015). Verleih-App Whyownit ist gescheitert. Retrieved March 30, 2017, from http://www.internetworld.de/e-commerce/share-economy/verleih-app-whyownit-gescheitert-893304.html
  19. Marmer, M., Hermann, B. J., Dogrultan, E., & Berman, R. (2012). Startup genome report. Retrieved March 28, 2017, from https://s3.amazonaws.com/startupcompass-public/StartupGenomeReport1_Why_Startups_Succeed_v2.pdf
  20. Meszaros, G. (2016). What percentage of businesses fail – The real number. Retrieved March 29, 2017, from http://www.successharbor.com/percentage-businesses-fail-09092015
  21. Metzger, G. (2014). Gründungstätigkeit wiederbelebt – Impuls aus dem Nebenerwerb. Retrieved March 28, 2017, from https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Gr%C3%BCndungsmonitor/KfW-Gr%C3%BCndungsmonitor-2014.pdf
  22. Nobel, C. (2011). Why companies fail and how their founders can bounce back. Retrieved March 28, 2017, from http://hbswk.hbs.edu/item/why-companies-failand-how-their-founders-can-bounce-back
  23. Streif, T. (2001). Webvan-Pleite stellt alle Dot.com-Pleiten in den Schatten. Retrieved March 30, 2017, from http://www.heise.de/newsticker/meldung/Webvan-Pleite-stellt-alle-Dot-com-Pleiten-in-den-Schatten-38465.html
  24. Veron, N. (2008, July 15). The demographics of global corporate champions. Bruegel Working Paper No. 2008/03. Retrieved from https://ssrn.com/abstract=2000710
  25. Weiß, M. (2008). Facebook wollte StudiVZ kaufen. Retrieved March 28, 2017, http://www.foerderland.de/digitale-wirtschaft/netzwertig/news/artikel/facebook-wollte-studivz-kaufen
  26. Wikipedia. (2016). Boo.com. Retrieved March 28, 2017, from https://de.wikipedia.org/w/index.php?title=Boo.com&oldid=159939515
  27. Wikipedia. (2017). studiVZ. Retrieved March 28, 2017, from https://de.wikipedia.org/w/index.php?title=StudiVZ&oldid=161351824
  28. Wölbert, C. (2012). iPhone-App Whyown.it: mehr leihen, weniger kaufen. Retrieved March 30, 2017, from http://www.heise.de/mac-and-i/meldung/iPhone-App-Whyown-it-mehr-leihen-weniger-kaufen-1667027.html
  29. Wray, R. (2005). Boo.com spent fast and died young but its legacy shaped internet retailing. The Guardian. Retrieved March 29, 2017, from https://www.theguardian.com/technology/2005/may/16/media.business
  30. Ziegler, C. (2013). Erfolgsfaktoren deutscher E-Ventures in der Early-Stage-Phase. Retrieved March 29, 2017, from https://publikationen.bibliothek.kit.edu/1000036996

Online Resources

  1. On the book website, additional content on failure is provided. Please visit: www.artop.de/en/failure

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Claas Triebel
    • 1
    Email author
  • Claudius Schikora
    • 2
  • Richard Graske
    • 3
  • Sarah Sopper
    • 4
  1. 1.PerformPlusGräfelfingGermany
  2. 2.Hochschule für angewandtes ManagementErdingGermany
  3. 3.Siemens Learning CampusMünchenGermany
  4. 4.University of Applied ManagementIsmaningGermany

Personalised recommendations