Businesses play a big part in today’s economy; they create millions of jobs every year and

contribute greatly to tax income for the local governments (funds used for public services).
Technology plays a big role in society, from facilitating education, improving communication,
and developing of new medicine, to being part of almost every day-to-day activity. Technology
constantly changes and evolves, behind the innovations are hundreds of start-up tech companies
that are being created every year. But according to CB Insights, a global database, the tech
startup industry has the highest failure rate, at 70%.
So, what differentiates a successful start-up from one that will fail? After doing some research,
some of the factors that I believe contribute to the failure or success of a new company in the
technology industry are:
1. Strategic factors: strategy and company resources.
2. Development process factors: proficiency of marketing activities and financial
analysis.
3. Product characteristics: product price, product advantage, meeting customer
needs.
4. Firm related factors: firm culture, research, and development team.
5. Market environment factors: market competitiveness.