The global startup economy is worth $3 trillion today. Startups are no longer concentrated in hubs like Silicon Valley but instead spread across the globe. There are 25 startup ecosystems around the world, with an ecosystem value above $10 billion each. But even with support from various incubators and accelerators, the “unicorn” status (a privately held startup valued at over $1 billion) is not commonplace.
Why Your Startup Won’t Last
Nine problems that face start-ups who are trying to scale.
December 16, 2019
Chanwichit Khuyngern/EyeEm/Getty Images
Summary.
Many startups fail because they don’t have a viable business model or idea, yet some startups struggle to survive despite successfully navigating the market.
- As startups grow, it becomes critical to add some elements of structure to help keep people accountable for their tasks and set expectations across the board. But structure often kills the initial entrepreneurial spirit.
- Other causes for failed startups include the challenges to recruit the right talent or the changing roles of the founder.
- Here are a few more common reasons startups have a hard time surviving in the long term, and what leaders can do about it.
New!
HBR Learning
Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.
Learn More & See All Courses
New!
HBR Learning
HBR Learning
Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.