THE IMPACT OF ECOSYSTEM SUPPORT, ACCESS TO FINANCE, AND THE STRENGTH OF NETWORKING CONNECTIONS ON THE PERFORMANCE OF START-UPS IN GEORGIA

Abstract

The study analyses the factors affecting the performance of start-ups in Georgia. Theoretically, it is believed that the success of start-ups largely depends on a number of external factors, including financial resources, network development and ecosystem support. The start-up ecosystem comprises institutional, organisational, and resource-based elements that foster the growth and sustainability of new ventures. Networking and access to funding are crucial for their development in a competitive market. The study examines the impact of ecosystem support, financing, and networking on the effectiveness of start-ups in Georgia. A specially designed questionnaire was used for the analysis, with 100 start-ups from across the country participating. Multiple linear regression was used in the study to analyse the impact of these factors on the performance of the startups. The dependent variable was the assessment of the startups' average performance (PERF_MEAN), while the independent variables were ecosystem support (ECO_MEAN), funding (FIN_MEAN), and networking (NET_MEAN). The analysis of regression coefficients showed that the strongest positive effect on performance is from networking (β = 0.426, p < 0.001), indicating that the success of start-ups is largely dependent on active professional relationships and network expansion. Funding also showed a significant positive influence (β = 0.313, p = 0.001), highlighting the importance of having sufficient financial resources available for start-ups. Ecosystem support, despite the positive coefficient value (β = 0.174), did not reach the standard significance level (p = 0.062), which suggests a possible partial influence through other factors, particularly the synergy of funding and networking connections. The results show that strong networking and adequate financial resources are particularly important for the success of start-ups, whereas the role of ecosystem support is more complex and interdependent with other factors. The research findings are significant for policy development, business development, and strengthening the start-up ecosystem in Georgia, particularly when the aim is to support innovative and high-growth companies. The study's findings highlight the need for more integrated policies and specialised programmes that combine financial, informational, and networking support.