Barriers in Digital Startup Scaling : A case study of Northern Ethiopia

Sammanfattning: The advancement of digital technology has created a pathway for digital start-ups to flourish very rapidly. However, these companies are facing resilient challenges and barriers during their scaling. Scaling is an important stage for ventures to grow their revenue at an exponential rate while keeping operating costs low. Nevertheless, there are several research papers that reflect the challenges and obstacles that hinder the scaling of digital startups. There are a limited number of scientific studies conducted in the context of developing countries. Therefore, this study aims at investigating the key potential contributing factors in northern Ethiopia (Tigrai). In this study, qualitative exploratory research is considered as a suitable and appropriate method to generate contextual understanding. The outcome of the study shows that the most noticeable themes impeding digital startups scaling are market challenges, lack of financing, lack of support from incubators, poor digital infrastructure, digital culture, and regulatory issues. Based on the findings this research critically suggests key applicable recommendations to overcome those challenges.