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Counseling Information

How to know your startup will success or fail?

Tuesday, 11:18 Date 04/02/2020.

In this Article extracted from a study of Tran Tu Luc and Le Khac Hoai Thanh, startups are defined as first-time registered businesses regardless of size. (including small, medium and large-scale businesses).

In Thailand, study result shown that the most significant factors affecting business success of SMEs in Thailand were SMEs characteristics, customer and market, the way of doing business, resources and finance, and external environment.

Benzing et al (2003) assesses the motivations, perceived success factors and business problems experienced by entrepreneurs inVietnam. Using data from a survey of 378 Vietnamese entrepreneurs in Hanoi and Ho Chi Minh City, results show that the important perceived entrepreneurial success factors include friendliness toward customers and a good product at a good price while signiﬁcant business problems include too much competition, unreliable employees and the inability to obtain both short-term and long-term capital.

In Turkey, based on survey responses, the most important business success variables are the entrepreneurs’ reputation for honesty and friendliness. Social skills and good customer service were also cited as critical success factors.

In Venezuela, competition, a weak economy, and foreign exchange limitations are problems, while good general management skills, appropriate training, accurate record keeping, and political involvement are success factors.

Table 1. Business success versus failure prediction – relevant empirical studies

Author	Subject	Country	Industry	Model	Explanatory Variables
Lussier (1995)	A nonfinancial business success versus failure prediction model for young firms	USA	All	Logistic Regression	Professional Advisors; Planning; Education, Staffing
Lussier (1996)	A business success versus failure prediction model for the service industries	USA	Service industry	Stepwise discriminant analysis	Professional Advisors; Planning; Staffing; Record keeping and financial control; Parents; Management Experience; Economic Timing; Marketing; Partners.
Lussier (1996b)	A startup business success versus failure prediction model for the retail industry	USA	Retail Industry		Professional Advisors; Planning; Record keeping and financial control; Economic Timing; Age; Product/Service Timing
Lussier and Corman (1996)	A business success versus failure prediction model for entrepreneurs with 0-10 employees	USA	All	Stepwise discriminant analysis	Professional Advisors; Planning; Staffing; Record keeping and financial control; Economic Timing; Education; Minority; Parents; Capital; Industry Experience,
Lussier and Pfeifer (2000)	A comparison of business success versus failure variables between U.S. and Central Eastern Europe Croatian Entrepreneurs	Croatia	All	Logistic Regression	Professional Advisors; Planning; Education; Staffing
Lussier and Halabi (2010)	A three-country comparison of the business success versus failure prediction model	Chile	All	Logistic Regression	Planning
Lussier and Marom (2014)	A business success versus failure prediction model for small businesses in Israel	Israel	All	Logistic Regression	Professional Advisors; Planning; Capital; Record keeping and financial control; Age
Lussier and Hyder (2016)	Why businesses succeed or fail: a study on small businesses in Pakistan	Pakistan	All	Logistic Regression	Planning; Staffing; Capital; Partners
Lussier et al., (2016)	Entrepreneurship success factors: an empirical investigation in Sri Lanka	Sri Lanka	All	Logistic Regression	Planning; Staffing; Record keeping and financial control; Product/service timings; Marketing
Benzing (2009)	Entrepreneurs in Turkey: A Factor Analysis of Motivations, Success Factors, and Problems	Turkey	All	Logistic Regression	Good Management Skills, Charisma: Friendliness, Satisfactory Government Support, Appropriate Training, Access to Capital, Previous Business Experience, Support of Family and Friends, Marketing/Sales Promotion, Good Product at Competitive Price, Good Customer Service, Hard Work, Position in Society, Maintenance of Accurate Records, Ability to Manage Personnel, Social Skills, Political Involvement, Reputation for Honest
Da Silva (2016)	Portuguese Startups: a success prediction model	Portugal	All	Logistic Regression	management experience, industry experience, marketing skills, age, education, parents, capital, partners, professional advisors, product or service timing, record keeping and financial control, plan, staffing and economic timing.