The impact of diverse factors on the success of Chinese start-ups: Byte Dance's success story

Abstract

China is ranked second in the world for the number of unicorns (i.e., companies with a valuation of $1 bn USD without being listed on the stock market), with local start-ups driving disruptive innovation. The Western world is sometimes less aware of the success of Chinese unicorns and their economic value. This paper examines the impact of diverse factors on the success of Chinese start-ups. Incorporating evidence from a literature review, interviews, surveys, and databases, this study demonstrates how the start-up ecosystem in China contributes to the success and development of Chinese start-ups. The paper argues that the human capital, venture capital, and governmental initiatives present in China make a firm and dynamic start-up ecosystem. Moreover, the case conducted on ByteDance illustrates country-specific and firm-specific advantages.