Obstacles to the Implementation of Innovations in Start-Up Companies

Abstract

Research Question (RQ): Start-up companies represent the support of the development of every economy. However, this is a more fragile part of the economy, because a large number of start-up companies fail in the first years of their development. The results of previous research indicate that there are several reasons for the failure of start-ups, and one of the key ones is the difficult application of innovations. In today's modern and turbulent times, in the embrace of globalization, innovations are an absolute must have. All companies that are not innovatively oriented are doomed to failure. Even large, multinational companies pay for the lack of innovation, so this is a signal to start-ups that investing in innovation is the most important thing in their budget. However, there are numerous challenges and obstacles in the application of innovations at start-ups. The main problem of the research is to detect what are the most important obstacles and challenges for the application of innovations in Bosnian start-ups, and by what methods it is possible to overcome them.

Purpose: The main purpose of the research is to point out the obstacles and challenges faced by start-up companies in Bosnia and Herzegovina and to give adequate recommendations for start-ups as well as all interest groups, how to eliminate them effectively, in order to make the economy and business operations of the company more propulsive and proactive.

Method: In the theoretical explanation of the problem, sufficient information contained in previous researches will be gathered, regarding the considered issue. Through empirical research, it will be determined what the most common types of obstacles are and challenges faced by start-ups in Bosnia and Herzegovina, what types of innovations are most often implemented in start-up companies in Bosnia and Herzegovina and which methods and ways can be used to overcome the mentioned obstacles. The research will be done on a sample of 10 start-up companies in BiH.

Results: The results of the research will show what are the obstacles and challenges in the implementation of innovations recorded in the sample of observed start-ups, what types of innovations are most often implemented in start-ups in Bosnia and Herzegovina, and how to most effectively overcome obstacles in the implementation of innovations in start-ups, with the aim of their better and more successful business.

Organization: Through research of this type, managers of start-ups (or those who intend to become one) can more easily identify the basic obstacles in the implementation of innovations in their business, and use the proposed methods to overcome them, in order to make their business more stable and sustainable.

Society: Increasing the stability of start-ups brings long-term benefits for the entire society. Socially responsible business of start-ups can contribute to a better distribution of resources in society, which is desirable for all participants in society, but also for the environment.

Originality: Research of this type represents one of the rare researches on start-ups in Bosnia and Herzegovina. It is a pioneering research in the context of challenges and obstacles in the implementation of innovations at start-ups in Bosnia and Herzegovina.

Limitations / further research: Limitations: small sample size, difficulties in data collection. Recommendations: research on the implementation of innovations according to the areas in which start-ups operate.

Keywords: start-up, innovation, challenges, obstacles, implementation, recommendation, stability, overcome.