People issues in startups – founders’ perspective

Abstract

The last decade has seen a significant growth in startups globally, driven by a combination of factors such as technological advancements, access to funding, and a growing entrepreneurial culture. The rapid advancement of technology has lowered the barrier to entry for startups. Cloud computing, mobile technology, and social media have made it easier and cheaper to create and market new products and services. The availability of funding for startups has increased in the last decade, with more venture capitalists, angel investors, and crowdfunding platforms providing capital to startups. Additionally, many governments have launched initiatives to support startups and entrepreneurship, such as tax incentives and grants. There has been a growing trend towards entrepreneurship, with more people starting their own businesses. This has been driven in part by a desire for greater autonomy and flexibility, as well as a growing awareness of the potential benefits of entrepreneurship. Startups are known for their innovative ideas, creativity, and agility, but they are also associated with a high rate of failure. As startups grow and scale up, they face peculiar challenges. While technical challenges are often identified and cited, people issues can also significantly impact the success of a startup and in general go unnoticed. As the company grows, different teams and individuals may work in silos, leading to fragmented communication and misaligned priorities. This can result in delays, rework, and missed opportunities. Another people issue that can arise in startups is a lack of alignment around the company's mission and values. As new employees are brought on board, they may not fully understand the company's goals and values, leading to a lack of motivation and engagement. Startups may also face issues related to trust and collaboration. As new hires are made quickly to keep up with demand, teams may struggle to build strong relationships and trust. Finally, startups must be aware of the potential for burnout and stress among their team members. Long hours, high-pressure environments, and constant change can lead to exhaustion and a decline in productivity. While the financial constraints and long working hours are well known and studied, it is these hypotheses about people issues in startups that have been understudied. In addition, in a growing startup environment, the Human Resource Management is taken up by the founder generally and the perspective of founder would be very helpful in bringing to light the issues prevalent in 6 startups. With this study we aim to identify such issues with the help of in-depth interviews of founders.