Personal, Organizational, and External Determinants of Tourism Startups Success: Step-By-Step for Business Leadership

In recent years, Algeria has witnessed a great trend towards establishing start-ups in various industries, especially in tourism, which witnessed the emergence of many successful startups that positively affected the quality of tourism services by providing innovative services that greatly impacted the sector’s development. Compared to the efforts and measures taken, the number of active tourism startups in the market is still small. The work aims to study factors affecting the success of tourism startups in Algeria. By studying the personal, organizational, and external determinants that influence the survival and growth of these enterprises, success is measured according to the concept of survival, which considers those startups that have existed for more than a year (considered successful). Through a questionnaire addressed to tourism startups across Algeria, the field study was conducted from December 24, 2023, to February 05, 2024, where responses from 43 companies were received. The results show that gender, age, training and continuous training have a significant impact on startup success and are the most essential personal determinants of entrepreneur factors affecting the success of tourism startups in Algeria. The most important organizational determinants of company factors influencing startup success are the number of employees, scope of the company, size of startups and startup labialization. This is due to the fact that these start-ups have the opportunity to receive funding from the Algerian Startup Fund. Regarding external determinants, i.e., environmental factors that influence success, the results show that the location of the startup is an important determinant of startup success. The most successful startups operate in the North Central region. This advantage is due to a favorable ecosystem, such as proximity to ministries and support institutions like incubators and accelerators.