Exploring Startup Failures: An Empirical Study of Failure Factors Using the ERIS Model and the AHP

This study investigates the key factors contributing to startup failure by incorporating firsthand insights from individuals within the entrepreneurial ecosystem. While previous research has primarily relied on secondary data or firm-level analyses, our approach captures direct perspectives on failure attribution. In the first phase, we surveyed 205 participants from diverse sectors of the ecosystem and categorized their responses using the ERIS framework(Entrepreneur, Resources, Industry Environment, Strategy). In the second phase, we applied the Analytic Hierarchy Process(AHP) to prioritize nine critical failure factors using a separate sample of 31 entrepreneurs. Results show entrepreneurial factors have greatest impact on startup failure-poor leadership(20.34%) and lack of mission/passion(13.16%) account for over 33% of overall weight. These findings highlight the importance of internal dynamics, particularly leadership, vision, and team management, in determining startup outcomes. We suggest that targeted support programs in leadership development, resilience training, and talent management may mitigate failure risks and enhance entrepreneurial success.