An investigation into success criteria for technology-based start-ups: A developing country perspective

J E Amadi-Echendu & M F Mngadi, Department of Engineering and Technology Management

Brief:

It is widely recognized that entrepreneurial activity drives economic growth and job creation. For this reason, small business development has been linked to economic growth, the creation of employment, and the alleviation of poverty. Public institutions and private agencies provide a range of intervention programs to support the development of technology-based entrepreneurial ventures. The interventions more or less assume that there are success factors for technology-based business start-ups.

Previous research shows that a typical technology-based start-up faces many challenges through the uncertainty, risk and opportunity continuum as the new business ventures to establish market presence. The research explored factors that influence technology based start-ups, focusing on success criteria for such new businesses. The study involved quantitative and qualitative engagement with entrepreneurs active in the process of commercializing technology through new business ventures in a developing country context. Some of the findings of the research are itemised as follows:

• education and experience are important for the start-up success
• mentoring and training during incubation contribute positively to start-up success
• personal involvement in the daily activities of the start-up and market knowledge significantly influence the success
• “adaptability, dedication, hard work, passion, tenacity, resilience, versatility” are key tenets
• access to markets is essential to success
• uniqueness, perceived quality and packaging of the product/service made very positive contributions
• nature of the technology limits financial bootstrapping
• some contradictory intervention policies at both national and local government levels

We observe that the nature of the consumer and financial markets determine what policy interventions are possible as globalization permeates even the least developing economies. In conclusion, none of the respondents indicated that the technology itself was a success criterion, somewhat confirming evidence gleaned from extant literature.