Are software start-ups different? An empirical study on performance of Finnish software companies

Arho Suominen, Sami Hyrynsalmi, Leena Aarikka-Stenroos, Marko Seppänen

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

    Abstract

    Entrepreneurship and start-ups have become modern hype terms. Especially, software start-ups have gathered a lot of interest due to a few successful examples, and the potential scalability of new business. A plethora of accelerators, events and communities has been found as well as new research agendas announced to boost and study the new phenomenon. The question, are software start-ups different, still remains unanswered. This study address whether software start-ups differ from the other kinds of new companies. We use the set of over 20,000 Finnish companies founded during 2010-2013 as an empirical material for our inquiry. To compare the financial performance of software start-ups and the rest, we use the current ratio, profit margin, revenue and return on assets as measures of financial performance. The results show that, indeed, software start-ups differ from the control group in the used financial indicators.

    Original languageEnglish
    Title of host publication2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC)
    EditorsJoao Pedro Mendonca, Ricardo Jardim-Goncalves, Joao Martins, Alain Zarli, Maria Marques, Marc Pallot
    PublisherIEEE Institute of Electrical and Electronic Engineers
    Pages991-996
    ISBN (Electronic)978-1-5386-0774-9
    ISBN (Print)978-1-5386-0775-6
    DOIs
    Publication statusPublished - 2 Feb 2018
    MoE publication typeNot Eligible
    Event23rd International Conference On Engineering, Technlogy and Innovation, ICE/ITMC - Madeira, Portugal
    Duration: 27 Jun 201729 Jun 2017

    Conference

    Conference23rd International Conference On Engineering, Technlogy and Innovation, ICE/ITMC
    Abbreviated titleICE/ITMC 2017
    CountryPortugal
    CityMadeira
    Period27/06/1729/06/17

    Fingerprint

    Industry
    Particle accelerators
    Scalability
    Profitability

    Keywords

    • software business
    • start-up
    • entrepreneurship
    • software industry
    • Finland

    Cite this

    Suominen, A., Hyrynsalmi, S., Aarikka-Stenroos, L., & Seppänen, M. (2018). Are software start-ups different? An empirical study on performance of Finnish software companies. In J. P. Mendonca, R. Jardim-Goncalves, J. Martins, A. Zarli, M. Marques, & M. Pallot (Eds.), 2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC) (pp. 991-996). IEEE Institute of Electrical and Electronic Engineers . https://doi.org/10.1109/ICE.2017.8279989
    Suominen, Arho ; Hyrynsalmi, Sami ; Aarikka-Stenroos, Leena ; Seppänen, Marko. / Are software start-ups different? An empirical study on performance of Finnish software companies. 2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC). editor / Joao Pedro Mendonca ; Ricardo Jardim-Goncalves ; Joao Martins ; Alain Zarli ; Maria Marques ; Marc Pallot. IEEE Institute of Electrical and Electronic Engineers , 2018. pp. 991-996
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    title = "Are software start-ups different?: An empirical study on performance of Finnish software companies",
    abstract = "Entrepreneurship and start-ups have become modern hype terms. Especially, software start-ups have gathered a lot of interest due to a few successful examples, and the potential scalability of new business. A plethora of accelerators, events and communities has been found as well as new research agendas announced to boost and study the new phenomenon. The question, are software start-ups different, still remains unanswered. This study address whether software start-ups differ from the other kinds of new companies. We use the set of over 20,000 Finnish companies founded during 2010-2013 as an empirical material for our inquiry. To compare the financial performance of software start-ups and the rest, we use the current ratio, profit margin, revenue and return on assets as measures of financial performance. The results show that, indeed, software start-ups differ from the control group in the used financial indicators.",
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    author = "Arho Suominen and Sami Hyrynsalmi and Leena Aarikka-Stenroos and Marko Sepp{\"a}nen",
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    Suominen, A, Hyrynsalmi, S, Aarikka-Stenroos, L & Seppänen, M 2018, Are software start-ups different? An empirical study on performance of Finnish software companies. in JP Mendonca, R Jardim-Goncalves, J Martins, A Zarli, M Marques & M Pallot (eds), 2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC). IEEE Institute of Electrical and Electronic Engineers , pp. 991-996, 23rd International Conference On Engineering, Technlogy and Innovation, ICE/ITMC , Madeira, Portugal, 27/06/17. https://doi.org/10.1109/ICE.2017.8279989

    Are software start-ups different? An empirical study on performance of Finnish software companies. / Suominen, Arho; Hyrynsalmi, Sami; Aarikka-Stenroos, Leena; Seppänen, Marko.

    2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC). ed. / Joao Pedro Mendonca; Ricardo Jardim-Goncalves; Joao Martins; Alain Zarli; Maria Marques; Marc Pallot. IEEE Institute of Electrical and Electronic Engineers , 2018. p. 991-996.

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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    AU - Hyrynsalmi, Sami

    AU - Aarikka-Stenroos, Leena

    AU - Seppänen, Marko

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    N2 - Entrepreneurship and start-ups have become modern hype terms. Especially, software start-ups have gathered a lot of interest due to a few successful examples, and the potential scalability of new business. A plethora of accelerators, events and communities has been found as well as new research agendas announced to boost and study the new phenomenon. The question, are software start-ups different, still remains unanswered. This study address whether software start-ups differ from the other kinds of new companies. We use the set of over 20,000 Finnish companies founded during 2010-2013 as an empirical material for our inquiry. To compare the financial performance of software start-ups and the rest, we use the current ratio, profit margin, revenue and return on assets as measures of financial performance. The results show that, indeed, software start-ups differ from the control group in the used financial indicators.

    AB - Entrepreneurship and start-ups have become modern hype terms. Especially, software start-ups have gathered a lot of interest due to a few successful examples, and the potential scalability of new business. A plethora of accelerators, events and communities has been found as well as new research agendas announced to boost and study the new phenomenon. The question, are software start-ups different, still remains unanswered. This study address whether software start-ups differ from the other kinds of new companies. We use the set of over 20,000 Finnish companies founded during 2010-2013 as an empirical material for our inquiry. To compare the financial performance of software start-ups and the rest, we use the current ratio, profit margin, revenue and return on assets as measures of financial performance. The results show that, indeed, software start-ups differ from the control group in the used financial indicators.

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    A2 - Marques, Maria

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    PB - IEEE Institute of Electrical and Electronic Engineers

    ER -

    Suominen A, Hyrynsalmi S, Aarikka-Stenroos L, Seppänen M. Are software start-ups different? An empirical study on performance of Finnish software companies. In Mendonca JP, Jardim-Goncalves R, Martins J, Zarli A, Marques M, Pallot M, editors, 2017 International Conference on Engineering, Technology and Innovation (ICE/ITMC). IEEE Institute of Electrical and Electronic Engineers . 2018. p. 991-996 https://doi.org/10.1109/ICE.2017.8279989