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Business Sustainability of Start-Ups Based on Government Support: An Empirical Study of Korean Start-Ups

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  • Wooseung Lee

    (Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul 03767, Korea)

  • Boyoung Kim

    (Seoul Business School, Seoul School of Integrated Sciences and Technologies (aSSIST), Seoul 03767, Korea)

Abstract

Since the mid-2000s, start-ups have increasingly become the driving force of new jobs and growth engines for advanced countries, and emerging nations are striving to vitalize start-ups through active government support policies. However, approximately 30% of start-ups shut down within two years of their foundation. Accordingly, this study determines the factors affecting the business sustainability of start-ups as based on available government support and provides suggestions to increase the effectiveness of the government-supported projects. This study conducted a survey of 273 start-ups in Korea, and empirically analyzed whether factors such as entrepreneurship, market orientation, and network affected business sustainability by using flow experience and entrepreneurial satisfaction as mediators. The results found that entrepreneurship affected business sustainability with flow experience and entrepreneurial satisfaction as the mediators, while market orientation affected business sustainability using flow experience as the mediator, and network affected business sustainability with entrepreneurial satisfaction as the mediator.

Suggested Citation

  • Wooseung Lee & Boyoung Kim, 2019. "Business Sustainability of Start-Ups Based on Government Support: An Empirical Study of Korean Start-Ups," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4851-:d:264397
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    2. Štefan Slávik & Richard Bednár & Ivana Mišúnová Hudáková & Branislav Zagoršek, 2021. "Business models of start-ups and their impact on the sustainability of nascent business," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 29-52, June.
    3. Annuridya Rosyidta Pratiwi Octasylva & Lilik Noor Yuliati & Hartoyo Hartoyo & Agus W. Soehadi, 2022. "Innovativeness as the Key to MSMEs’ Performances," Sustainability, MDPI, vol. 14(11), pages 1-14, May.
    4. Temitayo Shenkoya & Kyung Yun Hwang & Eul Hyun Sung, 2023. "Student Startup: Understanding the Role of the University in Making Startups Profitable Through University—Industry Collaboration," SAGE Open, , vol. 13(3), pages 21582440231, September.
    5. Charles Karani & Patience Mshenga, 2021. "Steering the sustainability of entrepreneurial start-ups," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 223-239, December.

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