Critical growth factors of ICT start‐ups

Abstract

Purpose

The present study in this paper seeks to deal with the crucial topic of growth determinants for ICT start‐ups. In this emerging industry high firm birth rates go hand in hand with a great risk of failure and only one firm out of three survives the first three years.

Design/methodology/approach

The paper analyzes 220 start‐ups of the ICT service sector and verifies the influence of individual and organisational factors on growth.

Findings

The paper finds that human capital and working experience have no significant impact on the success of young ICT firms.

Originality/value

The paper shows that critical growth factors are mostly financing and customer related variables (firm size and capital at start‐up, customer structure, regional market orientation, etc.).

Citation

Lasch, F., Le Roy, F. and Yami, S. (2007), "Critical growth factors of ICT start‐ups", Management Decision, Vol. 45 No. 1, pp. 62-75. https://doi.org/10.1108/00251740710718962