Improving the Startup Survival Rate: A Conceptual Framework

Abstract

The failing of startups has raised doubts about the startups universe. Their inability to keep the healthy cashflow was suspected to be the responsible aspect of why startup industry seemed to be declining – by the failing and layoff parades. Funding logic that only focused on developing the investments – from seed to A, B, C series, that were made by investors also suspected to have taken part of the failing and layoff parades. This research offered a conceptual framework that put the point of views on how the startup should survive. Instead of searching for higher funding level, the startups should be able to develop new competitive advantages that would regain the attention of the users – and it would have positive impacts to the cashflow. The conceptual framework combines three theories; RBV theory; lean startup methodology; and effectuation theory.