Startup performance and contingency factors

Abstract

This study aims to identify contingency factors that influence the performance of start-ups in the Special Region of Yogyakarta, focusing on the industrial sector. A total of 105 start-ups were selected using purposive sampling, with the criteria that start-ups are located in the industrial area of ​​Yogyakarta and have at least three employees. Data collection was carried out by surveys, either by sending questionnaires directly to respondents or indirectly, where respondents filled out a google form, while data analysis used the multiple regression method. The research hypothesis is that contingency factors, including environmental uncertainty, market competition, owner or manager participation, company size, and payment systems have an effect on start-up performance. The results of the study showed that environmental uncertainty, owner or manager participation, and payment systems have a positive effect on start-up performance. However, market competition and company size did not affect start-up performance. This finding proves that increasing the participation of owners and managers, as well as payment systems, are important factors in significantly improving start-up performance, especially in the industrial sector of Yogyakarta. This study is limited to start-ups that are tested based on test variables and does not distinguish between types of businesses and company sizes, so the results are less than optimal. Suggestions for future research should group start-ups based on these factors. However, this study has succeeded in proving that start-ups in Yogyakarta still have great opportunities to be developed, of course by considering contingency factors.