Factors Affecting Startups Sustainable Growth

1. Factors Affecting
Startups Sustainable
Growth
Ahmed Mohamed Abdel Hamid El Shiekh
Represented to
Dr. Saneya El Galaly

2. Agenda
• Startups
• Startups Vs. Microbusiness
• Startups Life Cycle
• Factors Affecting Startups Business
• Conclusion

3. Startups
A startup is a company that is in the first stage
of its operations.
These companies are often initially bankrolled
by their entrepreneurial founders as they
attempt to capitalize on developing a product
or service for which they believe there is a
demand.

4. Startups Vs. Small Business
While the difference between a
startup and a small business is
subjective, it often comes down to
the company’s growth goals and
revenue forecast.
Startups focus on disrupting markets
and driving top-line revenue at a fast
pace.
Small businesses, on the other hand,
often set their goals on long-term,
stable growth in an existing market.

5. Startups Life Cycle
• Startups are diversified and
complex in nature, these
entities have their own lifecycle.
Since the sequence of activities
and stages might vary among
different startups, a general
perspective for startups life
cycle are described as :
1. Bootstrapping stage
2. Seed Stage
3. Creation Stage.

6. Factors
Affecting
Startups
Business

7. Political Factors Affecting Startups
The political factors are very important factors that effect startup
businesses because the political environment may affect the
organization in many ways like adding the risk aspect that leads
to the main losses for the startup. Also, they may cause things
like increasing or a decreasing in taxation, tariffs and regulation,
import or export laws.
The political factors are the regulations that influence the
business operation either in a helpful way or a destructive way.
They may have a direct or an indirect effect on the business.
The lack of the political stability can impact the operations of any
business especially a startup one.

8. Legal Factors Affecting Startups
Any business that is organized as a legal entity is
subject to the law that governs its operations.
There are different types of business entities. For
example, corporations, limited partnerships,
partnerships, limited liability partnerships, limited
liability limited partnerships and limited liability
companies all of which have different legal statuses
and issues.
For a startup to obtain financing through different
types of investors, it may be subject to legal issues
such as security law and the type of loan that the
startup needs.

9. Technological Factors Affecting Startups
Technological factors can impact the decisions in
entering a new market or the launch of a new
product or service.
One of the technological factors that can affect a
startup business is automation, which can ease
the production lines and reduce human
interfering or reducing the cost of manufacturing.
Also, the internet connectivity which have an
influence on how startup companies
communicate with customers and also mobile
payments.

10. Human Resources Factors Affecting Startups
Human resources factors are very critical in
any startup business. Due to the role of the HR
(Human Resources), such as recruiting,
managing employments and applying the
labor laws in the business, the HRM (Human
Resources Management) deals with safety,
wellness, compensations, training, benefits for
the employees.
As startups business depends on flexible
business cultures, a structured HRM system
will support the startup in hiring, developing
and retaining employees.

11. Environmental And Social Factors Affecting
Startups
The Environmental and Social Factors is a very
important aspect for the startup business.
Many startups fail due to the lack of attention to
environmental and social elements, such as the
existing trends, limitations in the markets ,
lifestyles , education level , population growth and
buying habits.

12. Economic Factors Affecting the Startup Business
The economic factors is a very
vital factor that affects a startup
business. It also has a large part
in deciding how the company can
make their decisions in whether
the startup business plans to go
domestic or internally.
Economic factors are
consumer behaviour, employmen
t factors, interest rates and
banking and inflation and overall
economic indicators.

13. Financial Factors Affecting the Startup
Business
The financial factors that affect the startup
businesses are one of the most important aspects
that will directly support the startup business.
It is very crucial for the success or the failure of
any startup business as the management of the
financial resources and the financial activities for
the startup.
To accurately evaluate the financial health and
long-term sustainability of a startup business, a
number of financial metrics must be considered
such as liquidity, profitability and operating
efficiency.

14. Governmental Factors Affecting the Startup Business
Governmental support and policies
are a very important factor that
affects startups because
governments can encourage local
banks to work with startups and
small businesses by providing loans
or investments by lowering interest
rates.
Governments can support startups
businesses by the protection of
intellectual property by protecting
ideas

15. Conclusion
Business is extremity important for the
society on both the micro level and the
macro level.
It provides both goods and services, which
the consumer needs or wants, contributes
in social development, creates
opportunities and exciting innovations.
With every new startup, it helps in
creating a job and causes a dramatic effect
on the local and the global economy.

16. Thank You