Startup’s critical failure factors dynamic modeling using FCM

The emergence of startups and their influence on a country’s economic growth has become a significant concern for governments. The failure of these ventures leads to substantial depletion of financial resources and workforce, resulting in detrimental effects on a country’s economic climate. At various stages of a startup’s lifecycle, numerous factors can affect the growth of a startup and lead to failure. Numerous scholars and authors have primarily directed their attention toward studying the successes of these ventures. Previous research review of critical failure factors (CFFs) reveals a dearth of research that comprehensively investigates the introduction of all failure factors and their interdependent influences. This study investigates and categorizes the failure factors across various stages of a startup’s life cycle to provide a deeper insight into how they might interact and reinforce one another. Employing expert perspectives, the authors construct fuzzy cognitive maps (FCMs) to visualize the CFFs within entrepreneurial ventures and examine these factors’ influence across the four growth stages of a venture. Our primary aim is to construct a model that captures the complexities and uncertainties surrounding startup failure, unveiling the concealed interconnections among CFFs. The FCMs model empowers entrepreneurs to anticipate potential failures under diverse scenarios based on the dynamic behavior of these factors. The proposed model equips entrepreneurs and decision-makers with a comprehensive understanding of the collective influence exerted by various factors on the failure of entrepreneurial ventures.