Analysis of Factors Influencing Business Performance of Technology Startup Companies: The Case of Addis Ababa
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Date
2024-05-16
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A.A.U
Abstract
The study aimed to explain the critical factors influencing business performance in technology
startups operating in Addis Ababa, using an explanatory research design. The researcher tried
to show the causal relationships between entrepreneurial personality traits, management
competence, resource factors, networking and business performance. The study provided
valuable insights into the interactions among these variables. The research considered the
population of 751 active technology companies in Addis Ababa, as per data from the Addis
Ababa Technology Bureau (AATB, 2022). A sample size of 261 was determined and primary
data obtained was analyzed. Multiple linear regression was used to assess the collective and
individual impacts of the predictors on startup success. Results indicated that personality
factors, management competence, resource factors, and networking variables were significant
predictors of business performance. The model had a 0.644 R squared valued indicating that the
model explained 64.4 percent of the variance. The findings suggest that technology startups
should focus on enhancing managerial skills, optimizing resource management, and leveraging
extensive networking opportunities. This research adds empirical support to existing theories
while offering practical guidelines for stakeholders.
Key words: Technology Startups, Business Performance, Entrepreneurial Personality Traits,
Management Competence, Resource Factors, Networking