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Factors Affecting Startup Survival and Failure: Evidence on AI and Advanced Technology Engagement from Algerian Ventures

Year: 2026

Type: book-chapter

Abstract: This study examines the survival dynamics of 96 Algerian startups, with particular attention to the role of AI and advanced technological contributions.Primary data were collected via an online survey, yielding a nonprobabilistic sample due to the absence of an exhaustive official startup registry in Algeria.Survival patterns are first explored using the Kaplan-Meier estimator, revealing that AI-contributing startups exhibit a survival probability of 84%, compared to 65% for non-contributors.The analysis is extended using Cox proportional hazards models with time-dependent effects to distinguish shortand long-run impacts.The findings indicate that while AI contribution initially increases failure risk at entry, consistent with the Liability of Newness, this effect diminishes systematically over time, eventually translating into a long-term survival advantage.Sectoral analysis reveals that industrial startups face the highest baseline hazards, while Digital & IT firms exhibit the lowest entry hazards.Overall, the results suggest that technological contribution enhances long-term resilience among the startups in our sample.

Source: Advances in economics, business and management research/Advances in Economics, Business and Management Research

DOI: 10.2991/978-94-6239-711-8_25

Author: Samia Benzaim

Institution: Abbès Laghrour University of Khenchela

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W7165645331