Reasons of Failure According to Stages of New Venture Growth

The main purpose of this study is to identify the common characteristics of failed technology-based ventures according to the stages of growth. A large sample was used which included 2,052 firms which were designated by the Korean government as ‘governmentally-certified’ ventures. We identified 502 failed firms and compared their characteristics with those of successful ones according to stages of growth. In order to categorize stages of growth, we utilized a modified model of Kazanjian (1988). This study determined that entrepreneurs of failed ventures had significantly lower levels of education at all stages of growth. Various factors, however, influenced venture failure according to the stages of growth.