An investigation on the factors influencing the success of Ethiopian tech startup companies: The ISM approach

Startups play a significant role in developing innovation and the economic growth for a country. Technology-based startup businesses play a primary role in supporting economic development. The success of technology startups centres on various interrelated factors. This study identifies these key factors and determines their interrelationships using the ISM method. A literature review and expert opinion-gathering were conducted to identify nine factors: finance, marketing, business model, human capital, institution support, infrastructure, government support, culture and community, and legal aspects. A cross-impact matrix was developed and analyzed to structure the relationships among the factors into different levels. The structural self-interaction matrix (SSIM) uncovered five levels with control emerging as the projecting driving factor. The findings provide useful insights into prioritizing efforts for building successful technology startups. The most influential elements influencing technology business startups were graphed on the clustering map from their respective positions measured in terms of dependence and driving power. By resolving the given factors and their correlation, policymakers and entrepreneurs can establish an environment that facilitates the development and sustainability of tech startups in Ethiopia.