Internal and External Challenges in Digital Startup Ecosystem: A Systematic Literature Review

Abstract

The failure rate of digital startups in Indonesia exceeds 90% annually, a significant concern addressed by both the government's Agency of Creative Economy and researchers. Limited studies offer comprehensive insights into the internal and external challenges faced by digital startups at their inception. This research conducts a systematic literature review (SLR) using Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocols, analyzing papers from Emerald, Springer, IEEE, and Scopus containing “digital startup” in the title. The SLR identifies twelve primary causes of digital startup failure, evenly split between six internal factors (leadership, team dynamics, management, knowledge and skills, products/services, and business model) and six external factors (funding, competition, market conditions, customers, ecosystem, and regulation). Recognizing these factors empowers digital startup management to strategize effectively and implement governance measures to mitigate failure risks.

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