ognitive Modeling of the Startup Life Cycle
Under conditions of turbulent development of the world market, which takes place based on modern high-tech industries and introduction of IT technologies into all business processes, the problem of managing risky projects becomes extremely urgent. The innovative development of the global socio-econo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
PH "INZHEK"
2018-06-01
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| Series: | Problemi Ekonomiki |
| Subjects: | |
| Online Access: | http://www.problecon.com/export_pdf/problems-of-economy-2018-2_0-pages-214_220.pdf |
| _version_ | 1797333490970132480 |
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| author | Labunska Svitlana V. Prokopishyna Olena V. Iermachenko Iegor V. |
| author_facet | Labunska Svitlana V. Prokopishyna Olena V. Iermachenko Iegor V. |
| author_sort | Labunska Svitlana V. |
| collection | DOAJ |
| description | Under conditions of turbulent development of the world market, which takes place based on modern high-tech industries and introduction of IT technologies into all business processes, the problem of managing risky projects becomes extremely urgent. The innovative development of the global socio-economic system is impossible without the spread and intensification of activities of startups. Startup enterprises, despite the short period of their existence, play an important role in the processes of generating new knowledge, creating innovative projects and commercializing innovative ideas. Startups, as business units, constitute a separate subset of innovative enterprises, grouped according to scaling, using breakthrough innovative ideas, specific sources of financing and increased risk. Since the typical features of a successful startup are the rapid expansion of operations and high risks of financial and economic activity, a conditional time point at which both the risks and rates of growth in transaction volumes are simultaneously reduced can be defined as the fluctuation point at which the startup ceases to exist. The results of applying mathematical methods to process statistical information on the dynamics of the market proved that the fluctuation point of the life cycle of startups in Ukraine takes place in the time interval of the first year of financial and economic activities of the enterprise. During this interval, startup enterprises are oriented towards one of two alternatives: scaling operations on the basis of attracting investments and a significant expansion of activities or gradual curtailment of an innovative project in which investors’ financial resources could not be attracted. Both alternatives lead to the transmission of an enterprise from the class of startups to the class of large enterprises or the liquidation of the business. Startup enterprises in Ukraine have a high potential for innovation development and can become a driving force for the social and economic development of the country as a whole. In order to increase the positive effect of startup initiatives for the Ukrainian economy, it is necessary to solve a number of tasks, among which there are the expansion of information and financial support from the state, the formation of a favorable investment climate and infrastructure for the commercialization of innovative projects. |
| first_indexed | 2024-03-08T08:05:37Z |
| format | Article |
| id | doaj.art-703b03eec25a48d7a821d981e80cbba2 |
| institution | Directory Open Access Journal |
| issn | 2222-0712 2311-1186 |
| language | English |
| last_indexed | 2024-03-08T08:05:37Z |
| publishDate | 2018-06-01 |
| publisher | PH "INZHEK" |
| record_format | Article |
| series | Problemi Ekonomiki |
| spelling | doaj.art-703b03eec25a48d7a821d981e80cbba22024-02-02T11:05:21ZengPH "INZHEK"Problemi Ekonomiki2222-07122311-11862018-06-01236214220ognitive Modeling of the Startup Life CycleLabunska Svitlana V. 0Prokopishyna Olena V. 1Iermachenko Iegor V. 2Department of Accounting and Business Consulting, Simon Kuznets Kharkiv National University of EconomicsDepartment of Accounting and Business Consulting, Simon Kuznets Kharkiv National University of Economics Department of Accounting and Business Consulting, Simon Kuznets Kharkiv National University of EconomicsUnder conditions of turbulent development of the world market, which takes place based on modern high-tech industries and introduction of IT technologies into all business processes, the problem of managing risky projects becomes extremely urgent. The innovative development of the global socio-economic system is impossible without the spread and intensification of activities of startups. Startup enterprises, despite the short period of their existence, play an important role in the processes of generating new knowledge, creating innovative projects and commercializing innovative ideas. Startups, as business units, constitute a separate subset of innovative enterprises, grouped according to scaling, using breakthrough innovative ideas, specific sources of financing and increased risk. Since the typical features of a successful startup are the rapid expansion of operations and high risks of financial and economic activity, a conditional time point at which both the risks and rates of growth in transaction volumes are simultaneously reduced can be defined as the fluctuation point at which the startup ceases to exist. The results of applying mathematical methods to process statistical information on the dynamics of the market proved that the fluctuation point of the life cycle of startups in Ukraine takes place in the time interval of the first year of financial and economic activities of the enterprise. During this interval, startup enterprises are oriented towards one of two alternatives: scaling operations on the basis of attracting investments and a significant expansion of activities or gradual curtailment of an innovative project in which investors’ financial resources could not be attracted. Both alternatives lead to the transmission of an enterprise from the class of startups to the class of large enterprises or the liquidation of the business. Startup enterprises in Ukraine have a high potential for innovation development and can become a driving force for the social and economic development of the country as a whole. In order to increase the positive effect of startup initiatives for the Ukrainian economy, it is necessary to solve a number of tasks, among which there are the expansion of information and financial support from the state, the formation of a favorable investment climate and infrastructure for the commercialization of innovative projects.http://www.problecon.com/export_pdf/problems-of-economy-2018-2_0-pages-214_220.pdfcognitive modelingenterprise life cycleinnovationstartup |
| spellingShingle | Labunska Svitlana V. Prokopishyna Olena V. Iermachenko Iegor V. ognitive Modeling of the Startup Life Cycle Problemi Ekonomiki cognitive modeling enterprise life cycle innovation startup |
| title | ognitive Modeling of the Startup Life Cycle |
| title_full | ognitive Modeling of the Startup Life Cycle |
| title_fullStr | ognitive Modeling of the Startup Life Cycle |
| title_full_unstemmed | ognitive Modeling of the Startup Life Cycle |
| title_short | ognitive Modeling of the Startup Life Cycle |
| title_sort | ognitive modeling of the startup life cycle |
| topic | cognitive modeling enterprise life cycle innovation startup |
| url | http://www.problecon.com/export_pdf/problems-of-economy-2018-2_0-pages-214_220.pdf |
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