Key drivers of successful business leadership: the case of labeled startups

Abstract

The study explores the key factors influencing the success of labeled startups in Algeria, a region that has been relatively overlooked in existing literature. To achieve this, a qualitative approach was employed, involving semi-structured interviews with 15 startup founders from various business sectors. NVivo software was utilized for data analysis, incorporating Pearson correlation tests and calculating average percentage coverage. The findings reveal that technical skills and relational skills, specifically business leadership, are the primary drivers of startup success, with average coverage percentages of 23.50% and 19.77%, respectively. Following these, the factors of governance and the entrepreneurial ecosystem account for 12.21% and 14.62%, respectively. However, the study also identifies significant challenges that hinder success, such as a shortage of talented young individuals and difficulties in accessing funding. To enhance the chances of success and reduce the risk of failure for startups, it is recommended to strengthen the managerial skills of founders, optimize financing mechanisms, and expedite the publication of regulatory texts to facilitate startups’ access to public procurement opportunities.