Management, Market, and Financial Factors Separating Winners and Losers in E‐Business

There have been many successful e‐businesses as well as many failed e‐businesses. The methods and practices that were evident in the development of both surviving e‐businesses and failed ones have much to teach us. Why did some e‐businesses fail while others survived? At present few guidelines exist to assist e‐business owners and managers wanting to succeed in their Internet‐based ventures. This study empirically investigated factors that may lead to e‐business success or failure; these were categorized as management, market, and financial factors. The results of a survey were combined with one‐on‐one interviews of venture capitalists who funded successful and failed e‐businesses. The results indicate that certain factors deemed applicable to an e‐business may have contributed to the firm’s eventual success or failure.