EXPLORING THE FACTORS THAT INFLUENCE PIVOTING IN STUDENT STARTUPS: A CASE STUDY OF ENTREPRENEURSHIP STUDENT OF SBM ITB ANALYSIS

• Main Author: Ariella, Esther
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75487
• Institution: Institut Teknologi Bandung

The growth of startups in the world is currently experiencing an increasing trend. However, despite this growth, startups continue to face a significant risk of failure. Startups face various challenges in their entrepreneurial journey, one of which often leads to one important decision: pivoting. SBM ITB, an institute in Indonesia, offers an Entrepreneurship study program that aims to support the development of student start- ups by providing guidance from experienced lecturers and mentors. This start-up pivot phenomenon is also observed among student start-ups run by those majoring in Entrepreneurship. The main objective of this study is to collect empirical data regarding the factors that influence the pivoting phenomenon in student start-ups majoring in entrepreneurship. By understanding these factors, this research seeks to establish preventive measures that can minimize the occurrence of pivoting in student start-ups in the future. Qualitative research methodology was used to facilitate a deeper exploration of the factors that influence the emergence of this phenomenon. Specifically, this research takes an exploratory approach, aiming to dig deeper into the lessons learned from less successful startups and identify the underlying reasons for their failure. This research primarily focuses on student startups, specifically those within SBM ITB's entrepreneurship department. By conducting interviews with 15 representatives from each student startup, this research ensured a comprehensive sample size, thus minimizing redundancy of answers or data saturation. The findings of this study reveal that the alignment between a startup's business model and its capabilities is a key factor influencing the decision to pivot. This alignment significantly impacts student startups in the entrepreneurship department, where capabilities relate to the attributes and conditions of the internal team in reference to external factors such as market demand. Poor planning and lack of necessary expertise among student startups contribute to their pursuit of alternative approaches that facilitate business execution. This study demonstrates the positive impact of pivoting on student startups experiencing this strategic shift. To assist student startups in overcoming obstacles, it is imperative to establish support services within the company.