By Sam van de Schootbrugge 10-02-2021

Successful Start-Ups Build Strong Founding Teams

(4 min read)
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Start-up success hinges on many factors, but most would agree that the skills and experience of the founder and initial founding team are key. But less clear is whether these core individuals remain pivotal to the business as it grows. A new NBER working paper explores how founding teams impact the post-entry dynamics of start-ups. They find:

Start-ups launched by better skilled and more experienced founding teams produce superior firm performance in survival, employment, revenue and labour productivity.
Losing founding members has negative and persistent implications for a start-up’s success, especially in teams with fewer than five members.
A founder is more important to the long-term success of a business than early joiners, but losing an early joiner still has a significant detrimental impact.

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