Startup sustainability issues: An analytical hierarchy process (AHP) method and quantitative strategic planning matrix (QSPM)

Abstract

A newly started business entity has various kinds of difficulties, complexities, and risks (Trimi & Berbegal-Mirabent, 2012), the risks faced by startups include markets, products, competitiveness, employees, and finances (Paternoster et al., 2014). The purpose of this study is to analyze what factors contribute to the demise of startups in Banyumas. The participants in this study were resourceful startup actors in Banyumas. Data was collected through focus group discussions and questionnaires. Data were analyzed descriptively and qualitatively using an analytical hierarchy process (AHP), strengths-weaknesses-opportunities-threats (SWOT) analysis, and quantitative strategic planning matrix (QSPM). Based on the results of the AHP analysis, there were four main problems: background, competence, communication infrastructure, and security. Furthermore, it could be seen from SWOT and QSPM analysis that each SO (Strengths-Opportunities) strategy value was 152, WO (Weaknesses-Opportunities) was 100, ST (Strengths-Threats) was 148, and WT (Weaknesses-Threats) was 144. The conclusion was digital startup sustainability problems could be resolved by prioritizing the SO strategy. The implementation of these strategies included optimizing young workers, collaborating with supporting communities, and creating unique products. Apart from practical implications, this paper also develops literature on the factors that cause startup failure, which so far has been limited to discussing only the success factors.