Best Practices and Challenges among Thriving, Stagnant, Closed, and Failed Business Start-Ups

Abstract

This study explored the best practices and challenges among thriving, stagnant, closed, and failed business start-ups in Calapan City, Oriental Mindoro. A qualitative research design was employed, and thematic analysis was used to identify recurring patterns in the experiences of business owners and managers. Through purposive sampling, 15 participants with firsthand experience in business ownership or management were selected based on their involvement in major business decisions and their enterprises’ operational experiences. Data were collected through a researcher-developed, expert-validated, semi-structured interview guide. Interviews were audio-recorded with participants’ permission, transcribed verbatim, and analyzed through familiarization, initial coding, theme development, theme review, theme definition, and report preparation. Data collection was guided by the principle of saturation, whereby interviews continued until no new themes emerged. The findings revealed that thriving start-ups employed three interrelated practices: integrating customer feedback into business development, using basic data tracking to support timely operational decisions, and establishing partnerships within the local business ecosystem. In contrast, stagnant and failed start-ups encountered challenges involving limited financial capacity, inadequate responsiveness to changing market demands, gaps in entrepreneurial and operational competencies, and weaknesses in organizational systems and strategic management. The findings indicate that customer-responsive innovation, data-informed decision-making, resource management, and strategic collaboration are important considerations in understanding differences in start-up sustainability. The study contributes qualitative, context-specific insights into the practices associated with continued operation and growth and the constraints that hinder business development or contribute to discontinuation.