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Factors Affecting Startup Survival and Failure: Evidence on AI and Advanced Technology Engagement from Algerian Ventures

In: Proceedings of the International Conference on Artificial Intelligence Applications in Business Administration in MENA Region (ICAIABA 2026)

Author

Listed:
  • Samia Benzaim

    (Khenchela University, Department of Economics and Management, ECOVER-Lab)

Abstract

This study examines the survival dynamics of 96 Algerian startups, with particular attention to the role of AI and advanced technological contributions. Primary data were collected via an online survey, yielding a non-probabilistic sample due to the absence of an exhaustive official startup registry in Algeria. Survival patterns are first explored using the Kaplan–Meier estimator, revealing that AI-contributing startups exhibit a survival probability of 84%, compared to 65% for non-contributors. The analysis is extended using Cox proportional hazards models with time-dependent effects to distinguish short- and long-run impacts. The findings indicate that while AI contribution initially increases failure risk at entry, consistent with the Liability of Newness, this effect diminishes systematically over time, eventually translating into a long-term survival advantage. Sectoral analysis reveals that industrial startups face the highest baseline hazards, while Digital & IT firms exhibit the lowest entry hazards. Overall, the results suggest that technological contribution enhances long-term resilience among the startups in our sample.

Suggested Citation

  • Samia Benzaim, 2026. "Factors Affecting Startup Survival and Failure: Evidence on AI and Advanced Technology Engagement from Algerian Ventures," Advances in Economics, Business and Management Research, in: Djouhara Agti & Salim Bitam & Fateh Debla & Reguia Cherroun (ed.), Proceedings of the International Conference on Artificial Intelligence Applications in Business Administration in MENA Region (ICAIABA 2026), pages 264-275, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-711-8_25
    DOI: 10.2991/978-94-6239-711-8_25
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