Alexandra Richard was a student in ESSEC’s SMIB program (2018-2019). Alexandra explored and discussed in her work the pitfalls startups should avoid while in a hypergrowth phase.
France is a ‘Startup Nation’, conducive to the creation of startups: There were more than 10,000 in France in 2018. However, 44% of startups shut down in their first three years of existence, and 50% in their first five years. The reasons for these failures are numerous: difficulty of recruitment, administrative complexity, cost of work, etc. There are many pitfalls to be avoided in the development of a startup, especially when going through a hypergrowth phase. This phase generates a multiplication of the problems encountered earlier on due to the massive acceleration of recruitment, sales, and activities in general. Being prepared for these challenges is therefore critical to sustain the success and growth of nascent companies.