Determining the Contributing Factors of Successful Entrepreneurship in Terms of Starts up in Indonesian context with the Help of Logit and Probit.
The paper attempts to analyze the factors that impact and influence the success or failure of Indonesian startups. The paper creates a success or failure prediction model, which is based on the Indonesian entrepreneurship culture. In our study, we identify four categories that have a possibility of influencing the success levels. The four categories of influencing success include founder characteristics, capital, external factors, and the startup characteristics. In the model, we analyze startups that have been established in Indonesia from the year 2000 to the present. In our analysis, we analyze various explanatory variables, which include industry experience, management experience, marketing skills, capital, the characteristic of the founders, financial control and record-keeping, planning, staff, product and service timing as well as economic timing. In our analysis, we determine that external factors and the characteristics of the founders had a huge impact on the success of the Indonesian startups. From the model, we established that Indonesian startups that had younger founders and those with low education had more incidences of failure. However, contrary to the findings of past literature, there was a negative correlation between marketing expertise in the part of the startup and their success. The developed model offers a success and failure prediction model, which offers an ability for predicting Indonesian startup success accurately.