International Scientific Journals
of Scientific Technical Union of Mechanical Engineering "Industry 4.0"

The study of the theoretical aspects of the development of innovative business has proved that the most effective form of innovative business, which can create and implement the final product, is a startup. The environment and infrastructure of a startup form its ecosystem. An innovation ecosystem includes economic agents, as well as an innovation environment consisting of ideas, rules of the game, social interactions, and culture. The state of the innovative business and the startup ecosystem of Ukraine behind its main components and institutions are analyzed, and the factors of the development of the startup ecosystem for its competitiveness among the world are determined. Government measures and initiatives should promote the emergence of a community of startup founders who will work closely with other actors in the private sector of the economy and the public sector. At the same time, the state should not assume the role of a leader, but only an initiator.

A startup is starting an innovative enterprise that has in establishing greater business risk and successful beginning is likely its rapid growth. Exponential growth is an attraction for many investors who are actively searching for new startups and investing in them with the hope of going to be another Google, Facebook or Twitter. The paper describes the incubation program of WAYRA, which is one of the world’s largest business incubators. We have been dealing not only with the exited startup but also with the currently incubated WAYRA CEE in Prague. We evaluate their potential, strengths and weaknesses, opportunities and threats in the discussion.

Startup is a newly established enterprise, or an enterprise at the foundation stage, which is focused on monetizing an idea. According to the European Association of Business Angels there are launched about 50 million new projects every year (137,000 per day), but 90% of them fail. In the paper we analysed 51 startups, which had a minimum viable product and also some investment, but failed. The main aim of the research was to identify the factors leading to the failure of startups. The result has been to create an overview of the mistakes that young entrepreneurs commit at the early beginning.