INDIAN JOURNAL OF FINANCE AND BANKING 13(1) (2023), 63-77

FINANCE AND BANKING

IJFB VOL 13 NO 1 (2023) P-ISSN 2574-6081 E-ISSN 2574-609X
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STARTUP SUSTAINABILITY BASED ON GOVERNMENT,

TECHNOLOGY, AND MARKET: EMPIRICAL STUDY MEDIATION
OF PERFORMANCE & SATISFACTION

Shivani Shivhare (a)1 Nupur (b) V Shunmugasundaram (c)

(a)
Junior Research Fellow, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India; E-mail: shivanihare38@bhu.ac.in
(b)
Senior Research Fellow, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India; E-mail: kuharnupur9404@bhu.ac.in
(c)
Professor, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India; E-mail: sundaram@bhu.ac.in

ARTICLE INFO ABSTRACT

Article History:
Received: 1st January 2023
Revised: 19th February 2023
Accepted: 20th February 2023
Published: 28th February 2023
Keywords:
Startups, Sustainability, Satisfaction,
Performance, Market Orientation,
Government Support, Technology,
Incubators
JEL Classification Codes:
Start-ups are one of the driving forces of growth and development for developed economies, although
emerging economies are now striving to encourage start-ups for the advancement of the country with
the support of the startup ecosystem. However, 90 percent of the start-ups failed within a year of their
establishment. This study focuses on the factor affecting the sustainability of start-ups, and it is based
on primary data collected from 384 start-ups in India. This empirical study analyzed, whether factors
such as government support, market orientation, and technology orientation, affected the sustainability
of the start-ups by using entrepreneurial satisfaction and performance of the start-ups as the mediators.
Correspondingly, the study analyzes the mediation effect of entrepreneurial satisfaction between
performance and startup sustainability. The results conveyed that government support, and technology
affected startup business sustainability by fostering startup enterprise performance and entrepreneurial
satisfaction, while market orientation does not mediate business sustainability using startup enterprise
performance as the mediator, and technology orientation affected startup business sustainability with
entrepreneurial satisfaction as the mediator.

E20 © 2023 by the authors. Licensee CRIBFB, USA. This article is an open-access article distributed
under the terms and conditions of the Creative Commons Attribution (CC BY) license
(http://creativecommons.org/licenses/by/4.0/).

INTRODUCTION
Entrepreneurship has grown as a popular domain of research by both corporates as well as academicians, there are multiple
articles available to describe entrepreneurs’ behaviours (Blackburn & Kovalainen, 2009; Wadhwa et al., 2011). But the
present scenario focused on resource-based theories, entrepreneurial satisfaction innovation, and sustainable development
of entrepreneurship unlike the past studies were focused on demand and supply, production, entrepreneurs’ characteristics,
etc. (Weidinger et al., 2014). “Without sustainable organizations, there is no sustainable development, thus, no future.”. In
the modern world, the resource-based theory is combined with the sustainability theory to move entrepreneurship toward
sustainable development. According to the sustainability theory proposed by Professor Tim Waring, entrepreneurs must act
to overlook the environment and society’s welfare besides just economic profit (Waring et al., 2015).
A startup is the basic step of any entrepreneurship initiatives. It is an early-stage avenue for employment and
innovation (Salamzadeh & Kawamorita Kesm, 2017). The startup has paramount importance in improving environments
and society, which involves critical business activity for existence and growth (Silva et al., 2021). Lean startups and business
models in startups are burning topics in entrepreneurship literature (Ghezzi, 2019; Kountur et al., 2020; Lizarelli et al., 2022)
(Slávik et al., 2021).

1
Corresponding Author: ORCID ID: 0000-0002-1576-034X
© 2023 by the authors. Hosting by CRIBFB. Peer review under responsibility of CRIBFB, USA.
https://doi.org/10.46281/ijfb.v13i1.1976

To cite this article: Shivhare, S., ., N., & Shunmugasundaram, V. (2023). STARTUP SUSTAINABILITY BASED ON GOVERNMENT, TECHNOLOGY,
AND MARKET: EMPIRICAL STUDY MEDIATION OF PERFORMANCE & SATISFACTION. Indian Journal of Finance and Banking, 13(1), 63-77.
https://doi.org/10.46281/ijfb.v13i1.1976
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 Shivhare et al., Indian Journal of Finance and Banking 13(1) (2023), 63-77

Startups’ ecosystem growth is visible in the past few years in India (Singh et al., 2020). India’s startup ecosystem
steered growth and development and has become the third largest startup ecosystem after the US and China (Basu & Virick,
2015). India is still a growing economy with an abundance of large populations, and skilled and cheap labor (Sivathanu &
Pillai, 2020). However, a large population has more demands but, due to limited resources availability resource available,
alternative and substitute solutions can ease the market entry of startups in the Indian market (Scillitoe & Birasnav, 2022).
Indian startup ventures fail to ensure sustainability criteria due to various reasons. The survey conducted by IBM and oxford
economics displayed that around 90 percent of startups failed within the first five years of their establishment in India (Negi,
2021). And, 77 percent of venture capitalists stated that, the lack of technology is the major cause of this failure (Demming
et al., 2017). But recently technological startup entrepreneurship got momentum in India with around a 10 percent annual
growth rate (Sivathanu & Pillai, 2020). Technology advancement develops the technological capabilities of the firm to get
competitive advantages and to improve financial performance (Rezaee, 2016). Other than technology market orientation
plays a crucial role in the performance and overall sustainable development of the firm (Ismail, 2022). Customer attracts to
firms that have sustainability market strategies to incorporate economic, social, and environmental sustainability (Sivathanu
& Pillai, 2020). Sustainable development in industries has become a comprehensive strategy to guide the world’s social and
economic transformation while pursuing business activities (Shi et al., 2019). Startups are found to be uncertain regarding
the acceptability of products or services in the market and disclosing their performance, but the performance and
sustainability are inclined by the economic and environmental conditions of the operation area (Costa et al., 2022).
Further, this study adds dimension to the analysis, explicitly sustainable entrepreneurship along with the emphasis
on the need for business satisfaction & sustainability of startups (Murphy & Callaway, 2004), it empirically analyses the
effect of attributes such as government support, market orientation, and technology orientation on business sustainability
through the performance of startups and entrepreneurs’ satisfaction. The accelerator program initiated by the government
helps startups to facilitate performance in startups (Polo García-Ochoa et al., 2020). There is a need to study internal and
external factors that can impact the relationship between two variables (Caseiro & Coelho, 2018), because internal factor
has a profound impact on understanding the performance indicator in startups (Behl, 2022; Furtado et al., 2017). Thereby,
this study analyses the key factors to steer startups' business sustainability and survival. In this aspect, a theoretical model
was prepared based on (Lee & Kim, 2019) and empirical analyses were made on 384 samples.
The research Objectives of the study are as follows:
 To develop a theoretical framework for linking GS, TOR, MOR, SEP, ES, and SBS in the context of Indian start-
ups.
 To evaluate the mediation effect of SEP and EG between GS and SBS on the startups.
 To assess the mediation effect of SEP and EG between TOR and SBS on the startups.
 To measure the mediation effect of SEP and EG between MOR and SBS on the startups.
 To determine the intervention effect of EG between SEP and SBS on the startups.

LITERATURE REVIEW
Starting a new firm has the objective to grow into a valuable firm to benefit society, through the creation of employment
opportunities and innovations (Harlin & Berglund, 2021). India’s startup has experienced significant growth over the past
years (Scillitoe & Birasnav, 2022). Startups have been seen as drivers of change and innovation (Palmié et al., 2021) A
startup is defined as a temporary organization in search of working under a scalable, repeatable, and profitable business
model (García-Gutiérrez & Martínez-Borreguero, 2016). According to DPIIT startup is defined as any firm not formed by
reconstruction and mergers, as established less than 10 years ago, and has a turnover under 100 rupees crore shall be
considered a startup (startupindia.gov.in). Startups exhibit the potential to enable the transition of local areas, and economies
with progress, competitiveness, and industrial transformations through new technologies and innovations (Passaro et al.,
2020). Factors that are related to startup success such as customer value proposition, government schemes, marketing,
technology, and operations affect the performance of the new venture (Eisenmann, 2020). The introduction of new products
and technological innovation are of paramount importance in ensuring the success and growth of a business startup (Hazudin
et al., 2015). Some factors such as human resources, technological support, management system, relationship with
government, finance, and marketing, were found to affect entrepreneurial satisfaction in e-commerce startups (Gide & Wu,
2007).
The need for sustainability along with profit must include social, ecological, and economic aspects has catalyzed
the trend toward a paradigm shift in the business world (Sarango-Lalangui et al., 2018a). Sustainability encompasses both
environmentally oriented and socially oriented practices, and rather than distinguishing between different types of
sustainability goals, it is more general to pursue sustainability goals through corporate means. Sustainability
entrepreneurship embodies the concept of shared value in business.

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Sustainability in financial performance is essential (Filser et al., 2019). A number of studies reported performance
as the comparative indication based on economic and non-economic criteria, economic measures include sales, profitability,
financial return, and turnover of the business (Inmyxai & Takahashi, 2011; Seo et al., 2018; Soeryo Prayogo et al., 2019).
(Brush, 1992) Suggested future businesses should not measure the performance in growth terms, but also different ways
such as the growth of skills, knowledge, and business satisfaction of the entrepreneurs. Moreover, (Bamgbade et al., 2022)
have found the mediating role of organizational capacity and performance on business sustainability. This is essentially the
creation of economic value, and being involved in it, also creates value for society (Reynolds et al., 2018). This study
believes to address the research gap related to the experience of entrepreneurs of startups about stainability and performance
of the business together, (Lauto et al., 2020) specified the need of examining factors that can impact the entrepreneurial
experience and decisions.

Attributes of Startup (GS, MOR, TOR), and Startup Enterprise Performance (SEP)
Start-up enterprise performance reflected in growth rate, sales growth, business stability, customer satisfaction, and
entrepreneurial satisfaction (Rompho, 2018). Many studies explain that government support positively impacts
entrepreneurship (Fonseca et al., 2018). Firms that received support from the government relatively survived for a longer
period than the firms that did not get. Government support resulted in the greater performance of start-ups (Lee & Kim,
2019). Market orientation is the process that emphasizes not only customer satisfaction but also other functional areas of
the organization (Eric et al., 2017.). "A market orientation appears to provide a unifying focus for the efforts and projects
of individuals and departments within the organization" (Kohli & Jaworski, 1990.) Market orientation includes the external
environment to measure the competitive business environment of the firm, it is a culture placed focused on customer needs
or satisfaction along with watching the capabilities of the competitor (Pelham, 1999). Several studies show a positive direct
relation between MOR and performance. MOR is associated with superior performance in the form of profitability, sales
growth, and new product development (Mastorakis et al., 2020.). Some studies emphasized that a business can only grow if
it can maintain market orientation in an external business environment with severe dynamics where the customer’s demands
are diversified and subdivided (Lee & Kim, 2019).
Technology orientations are often understood as collecting resources and formulating strategies to avail
opportunities with the technical system, it shows an organization’s devotion to research and development, accepting and
applying the latest technologies to meet customers’ needs (Sala et al., 2022). The technology orientation refers to a set of
organizational decisions regarding the aggressive use of technology position, Process innovation and automation, and new
product development. Technology innovation is deemed an important enabler of perceived performance and sustainable
development through business activities (Soeryo Prayogo et al., 2019)(D’Amato et al., 2020).

Hypothesis 1. (H1) Government support for start-ups will positively affect startup enterprise performance.
Hypothesis 2. (H2) The market orientation of start-ups will positively affect startup enterprise performance.
Hypothesis 3. (H3) The technology orientation of start-ups will positively affect the startup enterprise performance

Attributes of Startup (GS, MOR, TOR), and Entrepreneurial Satisfaction (ES)

MOR has a mediating role in the performance and entrepreneurial orientation of startups (Ruzgar et al., 2014). Also, the
higher government supports enhance higher satisfaction among entrepreneurs. Government certification is important for
startups indicating that a government-funded program of research and development is directly associated with the quality
performance of the firm (L. Li et al., 2019). In general, “satisfaction” in business management is a variable used for customer
satisfaction and is measured as a non-financial performance of consumer products and corporate brands. However,
satisfaction with business can be considered in terms of companies rather than consumers, where financial and non-financial
performance can be considered. Entrepreneurial satisfaction is a scale that measures the overall satisfaction that a business
owner obtains while accomplishing its requirements and expectations from the business (Seco Matos & Amaral, 2017).
Entrepreneurs should be asked how satisfied they are with their performance and business doing (Kerr, 2017). Since, it is
difficult to estimate the quantitative indicators necessary in measuring the company’s performance in the initial stages of a
start-up, objective performances such as the sales and earnings rate, or subjective performances such as the expected
achievement and satisfaction are measured. Moreover, (Chakraborty et al., 2019) stated that non-financial satisfaction is
related to markets, technologies, and human resources after business start-up as entrepreneurial satisfaction. The concept of
entrepreneurial satisfaction is a subjective feeling about the business field in which entrepreneurs started their businesses,
and satisfaction is the state of being that is contentment without deficiency (Cooper & Artz, 1995). Thus, entrepreneurial
satisfaction can be measured by non-financial factors such as the pleasantness of business operation, enthusiasm about
business, sense of achievement in business, and attainment of sustainable development.

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Hypothesis 4. (H4) The government support for start-ups will positively affect entrepreneurial satisfaction.
Hypothesis 5. (H5) The market orientation will positively affect the entrepreneurial satisfaction of startupreneurs.
Hypothesis 6. (H6) The technology orientation will positively affect the entrepreneurial satisfaction of startupreneurs.

Mediation and Significance in Business Research

The mediation effect measures the causal relationship between two variables in the presence of the third variable called as
mediating variable (Demming et al., 2017; MacKinnon, 2001; MacKinnon et al., 2007). A mediating variable can totally or
partially transmit the impact of the antecedent on the result (Aguinis et al., 2017). According to (Namazi & Namazi, 2016)
in the mediation process “the independent variable first influences the mediator variable, and then the mediator influences
the dependent variable”. Several researcher has used mediation analysis in the field of business and management and
mediating variable were R&D, innovations, performance, customer engagement, business models, corporate culture, etc.
(Chen, 2022; Ferreras-Méndez et al., 2021; Garg et al., 2020; Zhao et al., 2022). Mediation is a statistical technique to
examine whether the impact of (X → Y) where causal variable ‘X’ and outcome variable ‘Y’ is at least partly explained
through a series of impacts of the ‘X’ on an intermediating variable Z and then on the intermediating variable on the ‘Y’
(i.e., X → Z → Y) (Fiedler et al., 2011).

Mediation Process
Start-up Enterprise Performance (SEP) and Entrepreneurial satisfaction (ES) as Mediators
Start-up enterprise performance can be used as synonymous with business performance, operational performance, business
growth, etc. The study (Haryono & Paminto, 2015,) explains the mediating effect of performance on the relationship
between corporate value and financial risk, and performance revealed a positive relationship between corporate value and
financial risk. Also, it was identified (Wahba & Elsayed, 2015) that the financial performance of the firm positively mediated
the relationship between ownership structure dimensions and corporate social responsibility. Most of the research are
concerned with the mediation effect of a firm’s performance in the sector of finance (Al-Slehat, 2020). The authors (Namazi
& Namazi, 2016) highlighted a framework to use performance as the mediator between CSR and stakeholder perception.
Moreover, some studies have emphasized the role of financial performance as a mediator between the size of the firms and
corporate value or corporate governance, and on capital structure and corporate value as well as risk on the value of the firm
(Al-Slehat, 2020; Author et al., 2014; Haryono & Paminto, 2015).
The study carried by (Lee & Kim, 2019; Zhao et al., 2022) used the satisfaction of entrepreneurs and performance
as a mediating variable in the analysis of environment and sustainability through entrepreneurial activities. (Iskamto &
Ghazali, 2021) has examined mediation analysis through the satisfaction and performance of MSEs. Hmieleski and Corbett
(2008) presented interaction effect on self-efficacy and entrepreneur’s satisfaction of startups. Nonetheless, the empirical
findings of (Lauto et al., 2020) also suggested the relationship between economic performance and the satisfaction of
entrepreneurs.

Startup Enterprise Performance (SEP), Entrepreneurial Satisfaction (ES), and Startup Business Sustainability (SBS)
Among the various business studies, most studies measure effectiveness and efficiency of startup by a focus on the financial
performance of business operations (Seo et al., 2018), but now there is more stress on the importance of non-financial
performance or intangible assets based on the current environment uncertainty (Hoque, 2005). For start-ups and SMEs,
business sustainability practice is a critical factor that must be considered, along with performance (Sarango-Lalangui et al.,
2018). The theory of sustainability states that the sustainable development of the organization mainly depends on the goals
and objectives of the organization and sustainable organizations can operate consistently and stably despite various
difficulties in the market (Shi et al., 2019). Sustainability needs should emphasize sustained natural resources, sustained
technology, sustained employment, and sustained performance of the firm (Sha, 2022). Good doing of the enterprise and
entrepreneur’s caliber in the process of business start-up may serve as a key variable in the sustainability of entrepreneurial
intention and behaviors (Harlin & Berglund, 2021; Tur-Porcar et al., 2018). The intention to sustain a business can be related
to positive attitudes among entrepreneurs, which makes them more satisfied with their business.
As mentioned above, satisfaction immerses the best emotions, the ultimate pleasant experiences, and a happy
mental state of the entrepreneurs that are encouraged by enterprise well performance thus, they both are critical success
factors of sustainable development of entrepreneurship and society (Eriksson Muyu Li Supervisor et al., 2012). Moreover,
(Lee & Kim, 2019) argued that entrepreneurial satisfaction can be related to non-financial factors such as the congenial
environment of business operation, enthusiasm about business, sense of achievement in business, and attainment of business
stability (Gupta & Muita, 2012). Accordingly, this study provides the following hypothesis that is based on startup
performance and satisfaction with the motivation of bringing sustainability to new ventures.

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Hypothesis 8. (H8) The startup enterprise performance of start-ups will have a positive effect on startup business
sustainability.
Hypothesis 9. (H9) The entrepreneurial satisfaction of start-ups will positively affect startup business sustainability.

MATERIALS AND METHODS

This study examines the key attributes to promote the business sustainability of nascent venture and startup to convert the
short survival rates into long-sustained startup firm, factors such as market orientation, technology orientation, and
government support are taken as the causal variable to empirically verify the effect on start-up performance, entrepreneurial
satisfaction, and business sustainability. Accordingly, this study surveyed Indian start-ups to verify the effects of
government support, market orientation, and technological advancement on the sustainable development of
entrepreneurship, and the startup performance and entrepreneurial satisfaction as mediators bring novelty in the field of
sustainable entrepreneurship. The research model as shown in figure 1 is designed with the research hypotheses provided
based on the literature review.

Government Support
Startup Enterprise
Performance
Business
Market Orientation Sustainability in
Startup
Entrepreneurial
Satisfaction
Technology
Orientation
Figure 1. Research Model
Source: Authors’ compilation

Variables and Analytical Approach

Based on an extensive literature review on business, startups, and entrepreneurship, the research instrument for this study
was developed. The measurement scale for entrepreneurial satisfaction was adopted from the literature for technological,
government support, market orientation, financial and non-financial performance, satisfaction and motivation of
entrepreneurship, and other relevant area presented in table 1.

Table 1. Variables and Operational Definition

Variables Factor Definition Items Reference

Government Support The support from the government has benefitted 3 (Joanne L.
(GS) start-ups Scillitoes 2021)
(Hazudin et al.,
2015)
Market Orientation The attitudes and strategies of satisfying 3 (O ´
Independent Variable (MOR) customer need, competitiveness, and acquiring Scar 2007)
market knowledge for achieving customer (Mastorakis et al.,
satisfaction 2020.)
Technology The technology support availed by the start-ups 4 (Zahra and Covin,
Orientation (TOR) for ease of their business activities 1993.)
(Deshpande et al
2013) (Urban &
Heydenrych, 2015)
(Bamgbade et al.,
2022)
Startup Enterprise The financial performance of the start-ups 4 (Sivathanu & Pillai,
Performance (SEP) acquired by their operation 2020) (Rompho,
2018) (Zahra and
Covin, 1993)
Parameter/ Mediator
Entrepreneurial Satisfaction with business activities and 7 (Seco Matos &
Satisfaction (ES) acknowledgment of doing something owned by Amaral, 2017; St-
the entrepreneur regarding start-up activities. Jean & Mathieu,
2015)

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Startup Business The possibility is that the business activities of 8 (Karani 2021)
Dependent Variable Sustainability (SBS) start-ups are enough to sustain business (Sarango-Lalangui
economically, socially, and environmentally in et al., 2018a)
the long run.
Source: Literature

Sampling and Data Collection

This research follows quantitative methodology with the use of primary data collected through the questionnaire, the data
was collected from more than 400 startups operating in Madhya Pradesh, India. The sample was considered using the
stratified random sampling technique and the key respondent of the questionnaire survey were owners/founders, partners,
executives, and other key persons of the startups. The data was collected from the respondents through surveyed by visiting
their work areas or offices and gathering all the details about technology and digitalization, government support through
policies and programs for startups, startup perceived performance, market and market difficulties, satisfaction level through
entrepreneurship and practice of business sustainability, questions was explained to the respondents and their confidentiality
and annoying reassured. The sample size of 384 was calculated by using Cochran’s formula of indefinite population and a
startup the total revenue for startups must be under Rs. 25 crores, situated in India as prescribed by DPIIT, GOI was used
as the eligibility criteria for the selection of startup.

Instrument/ Scale Used

All the variables were measured by using the 5 Likert scales. The independent variables were measured using the scale
representing strongly disagree=1, Disagree=2, Neutral=3, Agree=4, and strongly agree=5. The startup firm’s performance
was represented as extremely declined=1, Declined=2, Average=3, Improved=4, and extremely improved=5.

Analysis of Reliability and Validity

A pilot study was conducted to inspect the validity and reliability of the questionnaire before collecting the final data. The
reliability of the model was tested and the result has shown as .917 which should be more than the required value of 0.7 to
get the reliability of the instrument.
To ensure the reliability and validity of the research model, the constructs of this study were analyzed by using
exploratory analysis as the result is presented in Table 2.
The result of the standard loading value when scored 0.6 or more, can be used as a latent variable. All the constructs
of this study scored more than 0.6 or more. The composite reliability of all the constructs should be close to or more than
0.7, as all constructs of this study score 0.9 or higher thus, meet the standard set by (Bhattacharya et al., 1998) and (J. J. Li
& Zhou, 2010). The AVE should be 0.5 or more as the standard set by (Frare & Beuren, 2021), and all the constructs in this
study scored AVE more than 0.8 (See Table 2). Thus, ensuring the validity of this study model.

Table 2. Results of reliability and convergent validity test

Factor Loading Cronbach’s Alpha rho_A Composite Reliability Average Variance Extracted
(AVE)
ES 0.898 0.947 0.948 0.96 0.826
0.882
0.924
0.919
0.921
GS 0.901 0.923 0.924 0.952 0.868
0.958
0.935
MOR 0.929 0.92 0.923 0.95 0.863
0.947
0.911
0.901
0.898
0.917
0.935
0.909
SEP_ 0.961 0.934 0.941 0.958 0.884
0.957
0.901
TOR_ 0.927 0.909 0.909 0.943 0.846
0.912
0.92
Source: Compiled from primary data using PLS-SEM

Discriminant validity
The off-diagonal values (see Table 3) show the correlation between the latent constructs. The discriminant validity is verified
by comparing the inter-correlations of the constructs with AVE, as displayed (see Table 3). As the shared variance values

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were lower than the corresponding AVE, discriminant validity between the constructs in the study was proved as per (Ab
Hamid et al., 2017) the required criteria.

Table 3. Correlation matrix and average variance extracted (AVE)

ES GS MOR SBS SEP_ TOR_

ES 0.909
GS 0.378 0.932
MOR 0.372 0.558 0.929
SBS 0.667 0.402 0.459 0.912
SEP_ 0.626 0.395 0.367 0.465 0.94
TOR_ 0.403 0.469 0.657 0.466 0.409 0.92
Note: The numbers in bold are AVE square root values of each variable.
Source: Primary data

Common Method Bias

The single-factor Harmen test (Podsakoff et al., 2003) was conducted to check the existence of common method bias. The
result was 40.082% which is less than 50%, justifying that there is no concern of common method bias for this study.

RESULTS AND DISCUSSIONS

Demographic Characteristics of the Respondents
The survey results showed from the total of 384 respondents, 77.60 percent were male and 22.13 percent were female, in
case of age concerned 12.8 percent of total less than 25 years, and 55.7 percent were aged between twenty-five to thirty -
five, 24.9 percent were between thirty-five to forty-five, and only 6.8 percent were older than forty-five years, that show
more start-up entrepreneurs are in the age of twenty-five to thirty-five years. In case business ideas of current start-ups
showed that seminars and conferences are the most idea-genic source has 26.6 percent of ideas came from there, the next
vital source of start-up ideas are found to be friends and relatives as 14.6 percent of ideas came from there, and 13.5 percent
were from newspapers, and 37.5 percent is from other sources. (Table 4).

Table 4. Demographic profile of respondents

Category Frequency Percentage

Ages Less than 25 49 12.8
25 to 35 years 214 55.7
35 to 45 years 95 24.7
More than 45 26 6.8
Total 384 100.0
Gender Male 298 77.60
Female 85 22.13
Total 384 100.0
Marital Status Unmarried 136 35.4
Married 225 58.6
Divorced 23 6.0
Total 384 100.0
Business Idea Newspaper 52 13.5
Seminar/Conferences 102 26.6
Bank/ Financial institutions 30 7.8
Friends/ Relative 56 14.6
Other 144 37.5
Total 384 100.0
Source: Compiled from primary data.

Measurement Model
The SmartPLS 3.0 software was applied for primary data analysis as many businesses used it for analyzing measurement
models (Hwa et al., 2017). The measurement properties in the final model was calculated for the latent constructs, reflective
and formative in nature having multiple indicators. There are two methods for structural equation analysis; one is covariance-
based and the other is partial least square based (Moqbel et al., 2020), and the study of (Sarstedt et al., 2020) (Carrión et al.,
2017) suggested the use of PLS-SEM for mediation analysis.

Model Fit
The standards for the goodness-of-fit index (GFI) of the revised model were verified to check the fit of the model. The
model is considered fit if the NFI will 0.9 or higher (Hwa et al., 2017). This model showed significant results, i.e., NFI =
0.91, SRMR = 0.037, as per the standard set by (Hair et al., 2011) (see Table 5).

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Table 5. Model fit

Saturated Model Estimated Model

SRMR 0.037 0.073
d_ULS 0.341 1.332
d_G 0.442 0.465
Chi-Square 1026.155 1097.575
NFI 0.91 0.878
Source: Compiled from primary data by using PLS-SEM

Table 6 has shown the results of the hypotheses tested showed that GS (T value = 3.423, β= 0.240) and TOR (T
value = 2.787, β=0.253) had a positive and significant effect on SEP, but MOR have an insignificant effect (T value= 0.274,
β= 0.067) on SEP. Thus, we fail to accept hypothesis two, but fail to reject hypotheses one & three.
For the hypothesis four, the significant impact of GS on ES has been identified, with findings (T value = 3.448).
Similarly, for the hypothesis five the impact of TOR on ES is positively significant (T value = 2.582), but hypothesis six
was rejected due to the insignificant effect of MOR on ES.
Moreover, the hypothesis seven was accepted as the result revealed a significant and positive impact of SEP on ES (T value
= 9.744, β= 0.526).
Finally, both the hypotheses eight and nine were accepted with a significant impact of SEP (T value = 4.462,
β=0.334) and ES high impact (T value = 10.606, β= 0.618) SBS. Further, table 6 also, shows MOR does not find a significant
effect on SEP as well as ES, whereas GS had a greater effect on ES, and ES has a greater positively significant effect on
SBS than SEP (see Table 6).

Table 6. Results of the hypothesis test

Hypothesis Channel Path Coefficient T value Decision R2

Hypothesis 1(GS - SEP) 0.240 3.423 Accepted 0.223

Hypothesis 2 (MOR - SEP) 0.067 0.274 Rejected
Hypothesis 3 (TOR -SEP) 0.253 2.787 Accepted

Hypothesis 4 (GS- ES) 0.375 3.448 Accepted 0.427

Hypothesis 5 (MOR -ES) 0.061 0.548 Rejected

Hypothesis 6 (TOR- ES) 0.215 2.582 Accepted
Hypothesis 7 (SEP - ES) 0.526 9.744 Accepted
Hypothesis 8 (SEP - SBS) 0.334 4.462 Accepted 0.449
Hypothesis 9 (ES - SBS) 0.618 10.606 Accepted

Notes: t-values for two-tailed test: ***t-values 2.58 (sig. level = 1%), (Sivathanu & Pillai, 2020)

Figure 3. SEM (structural equation model) analysis of the research model

Source: Compiled from primary data

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Mediation Effect
We are concerned with evaluating whether the effects of the causal variables; GS, MOR, and TOR on SBS are mediated by
ES and SEP. To examine the mediation effect of the ES and SEP through these pathways we used the SmartPLS algorithm.
The result (see Table 7) revealed that the total effect of GS (β= 0.150) and TOR (β=0.169) on SBS was significant with the
inclusion of mediating variables of SEP and ES, whereas, MOR has insignificant relation on SBS (β=0.037, T= 0.515) in
presence of SEP and ES.
The indirect effect of GS on SBS was significant (β= 0.053, T= 3.185, P=0.002) in presence of mediator ES.
Additionally, GS also has a significant impact on SBS in presence of mediator SEP (β=0.019, T= 3.185, P=0.002). Further,
the indirect effect of TOR on SBS was identified through ES as a mediator between them (β=0.067, T= 2.884, P= 0.004) it
is more significant than the indirect effect of TOR on SBS through SEP (β=0.020, T=2.884, P=0.004). However, no
significant indirect impact of MOR is found on SBS through both the mediators; ES and SEP.
Table 7 also indicates, the impact of SEP on SBS through ES being a mediator, the result was significant with
direct effect (β= 0.334), indirect effect (β= 0.325), and total effect (β= 0.659). Moreover, the impact of ES on SBS was the
significant direct and total effect (β=0.618), and the null indirect effect was assessed.

Table 7. Results of Direct, Indirect, and Total effects

Dependent variable Independent variables/ Direct Effect Indirect Total T- value

Mediator Effect Effect
GS - 0.019 GS->SEP->SBS 0.150 3.185

Startup Business
Sustainability 0.053 GS -> ES -> SBS
MOR - 0.005 MOR->SEP->SBS 0.064 0.515

0.037 MOR->ES->SBS
TOR - 0.020 TOR->SEP- >SBS 0.169 2.884

0.067 TOR->ES- >SBS

SEP 0.334 0.325 SEP-> ES -> SBS 0.659

ES 0.618 0.618 10.606

Source: Primary data collected through questionnaires analyzed using PLS-SEM
Note: GS= Government support, MOR= Market orientation, TOR= Technology orientation, SEP= Start-up enterprise performance, ES= Entrepreneurial
satisfaction, BSB= Start-up business sustainability

DISCUSSIONS
This study is conducted to empirically determine the factors affecting business sustainability and the survival rate of start-
ups, as recognized since global government support in an attempt to secure new growth engines and create jobs. The results
of the data analysis showed that start-ups based on GS, and TOR had a positive effect on business sustainability through
mediator’s startup enterprise performance (SEP) and entrepreneurial satisfaction (ES). The findings show that the
government assistant program (GS) has a significant association with the performance of the start-up and were validated by
the study of (Musa et al., 2017) which suggested a significant government role in the performance of nascent ventures. The
findings of the present study indicate that technology orientation (TOR) has a significant impact on the performance of
startups, with a similar result to the findings of (Holgersson & Granstrand, 2021) revealing the importance of technology
such as patenting, digital innovations, R&D has a significant positive impact on the performance including cost reductions,
productivity, sales growth. Ultimately, factors such as innovativeness, digitalization, and information symmetry of
entrepreneurs had a positive impact on the performance of the start-ups as well as business sustainability.
The previous empirical investigation of (Gibson et al., 2014; Gupta & Muita, 2012) is also revealed similar results
that there is a positive significance in enterprise performance on the entrepreneurial satisfaction of startups. The development
of technology significantly impacts on the satisfaction of entrepreneurs in nascent ventures this result is similar to the
previous literature (Lee & Kim, 2019). Additionally, the government support has been identified as a significant factor in
this study to foster business satisfaction among entrepreneurs of the start-up, this result is consistent with (Reddick & Roy,
2013; Sharma et al., 2021) that show government support including development programs, websites, and e-portal, etc. are
boost the satisfaction of the startupreneurs.
Caseiro and Coelho (2018) stated that GS has unique competitiveness in start-ups that are difficult to imitate, thus
entrepreneurship can serve as a critical factor in terms of mid/long-term growth and sustainable development for start-ups.
On the other hand, market orientation positively impacted business sustainability with startup enterprise performance as the
mediator, but not on entrepreneurial satisfaction.
Previous studies on startups stated that start-up sustainability is affected by variables such as the entrepreneur’s
satisfaction and the start-up ecosystem consisting of government and society and there is a positive association between
satisfaction and sustainability in entrepreneurship of new ventures (Lee & Kim, 2019; Ziakis et al., 2022).
The role of the performance of the startups is found significant to the sustainability of the business which can be
validated by the study of (Deslatte et al., 2021; Lee & Kim, 2019). This shows that when the performance is a key factor of

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start-ups that connects with sustainable practices, it means if startup performed well, it motivates the entrepreneurs to
implement sustainable business practices.
It is observed from the study that market orientation is insignificant in obtaining satisfactory performance and
satisfaction among startupreneurs, this finding is similar to the study of (Lee & Kim, 2019), A company must maintain its
market orientation in the dynamic market environment for sustainable growth (Scillitoe & Birasnav, 2022). Accordingly,
start-ups should encompass the marketing environment to analyze customer values and to adapt good market fit for ultimate
sustainability (Ruzgar et al., 2014). Moreover, MOR positively impacted on business sustainability with entrepreneurial
satisfaction as the mediator, which is contrary to (González-Benito et al., 2009; Huang, 2016).
The present study is also identified that performance has a significant impact on sustainability through mediator satisfaction,
this comprehensively indicates that performance brings satisfaction among entrepreneurs which motivates them to
sustainable business practices (Deslatte et al., 2021).
The study shows that business leads to entrepreneurial satisfaction and performance with aid of government, and
technology with sustainability. Moreover, as mentioned, government and technological support are useful to perceive
opportunities that will accelerate entrepreneurial success and sustainable business growth.

CONCLUSIONS
Based on the results, this study can provide inferences to set the direction for sustainable growth and development of start-
ups. First, as indicated by the results, startup performance is a key variable for the business sustainability of start-ups.
Previous studies based on performance confirmed that it is only possible when it is supported by an entrepreneurial
ecosystem. Furthermore, startup performance promotes the more explorative activities of start-ups and improves their
capacity to implement sustainable ideas. Thus, entrepreneurs must immerse themselves in innovative ideas and sustain
events to develop their capabilities. Accordingly, entrepreneurs can be satisfied in the early stages of a business when they
focus on both financial and non-financial performance and entrepreneurial satisfaction. Moreover, the government support
programs must be intended for safeguarding various challenges and obstacles of startups, and further technology should
encompass entrepreneurship programs for start-ups to support at early-stage.
Besides, start-ups have different environments and ecosystems depending on the business field, which is why more
detailed research must be conducted when considering types of business such as manufacturing, IT, or service. Startups in
the area of automobile and IT and fashion industries should adopt sustainable marketing strategies to enhance customer
satisfaction (Ejovwokeoghene OGBARI et al., 2022; Jung et al., 2020). Correspondingly, the government should collaborate
with startups (specifically with cleantech and energy) to increase the financial benefits of the startups. Technology
advancement should be encompassed to reduce the information asymmetry, that not only benefits startups but all the
participants of the industry (Kim et al., 2020).

Limitations and Further Scope area

The study has found a link between government, technology, and market support, along with the mediation effect of
entrepreneurial satisfaction and startup performance on startup sustainability. It has many limitations that create
opportunities for future research such as the survey of this study has geographic limitations as samples are collected from
the startup of Madhya Pradesh, India, to generalize the results. In Addition to limitations, the data for the present study were
collected in a one-time frame, longitudinal studies can be incorporated in the future. It is a quantitative analysis further
studies may incorporate a qualitative method for a better understanding of entrepreneurial behaviours on sustainability.

Implications
This research is a theoretical background of sustainability in start-ups in the context of India to provide inclusive factors
required for sustainability building in startups the proposed theoretical model validate empirically.
This study serves academicians by contributing to the entrepreneurship domain by providing a research framework for
business sustainability. This study contributes managerial implications to suggest strategic planning a scaling of the startup
for sustainable growth, sustainability in business is not simple to attain and retain, and this research contributes to startup
entrepreneurs developing healthy customer relations and better implementation of the start-up ecosystem for sustainable
growth of the firm.
From the perspective of government implications, this research suggests that the government should provide more
training to entrepreneurs for sustainable practices, and there must be more involvement of the government in increasing the
performance of start-up companies. And it will prove better if the government encourages marketing training and platforms,
especially for start-ups.

Author Contribution: Conceptualization, S.S., N. and S.V.; Methodology, S.S.; Software, S.S; Validation, S.S., N. and S.V.; Formal Analysis, S.S., N.
and S.V.; Investigation, S.S., N. and S.V.; Resources, S.S., N. and S.V; Data Curation, S.S.; Writing – Original Draft Preparation, S.S., N. and S.V.;
Writing – Review & Editing, S.S., N. and S.V.; Visualization S.S., N. and S.V.; Supervision, S.V.; Project Administration, S.S. and N.; Funding
Acquisition, S.S., N. and S.V. Authors have read and agreed to the published version of the manuscript.
Institutional Review Board Statement: Ethical review and approval were waived for this study, due to that the research does not deal with vulnerable
groups or sensitive issues.
Funding: Jawaharlal Nehru Memorial Fund, New Delhi for this research.
Acknowledgments: Not applicable.
Informed Consent Statement: Informed consent was obtained from all subjects involved in the study.

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Data Availability Statement: The data presented in this study are available on request from the corresponding author. The data are not publicly available
due to restrictions.
Conflict of Interest: The authors declare no conflict of interest.

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