The Impact of Management on Startup Efficiency and Success: Evidence from Georgia

Abstract

This study investigates the managerial factors influencing the performance and market establishment of startups in Georgia between 2018 and 2025. Using a mixed-methods approach, the research combines qualitative insights from 60 startups supported by the Georgian Innovation and Technology Agency (GITA) with quantitative analysis of managerial practices, organizational structures, and resource allocation. Findings reveal that inadequate planning, limited leadership capacity, and suboptimal resource management significantly hinder startup growth and scalability. Startups that effectively integrate strategic decision-making, structured managerial processes (planning, organizing, leading, controlling), and financial support demonstrate higher innovation output and faster market penetration.Based on these results, the study proposes an original management framework for startups, conceptualizing success as a multi-stage process encompassing idea generation, product development, market introduction, managerial execution, and financial facilitation. The framework emphasizes the interplay between internal managerial capabilities and external ecosystem support, providing actionable guidance for entrepreneurs, investors, and policymakers to enhance startup sustainability and scalability in emerging markets