A dynamic software start-up competence model

Context: Software startups are important drivers of innovation, job creation, and digital transformation. However, more than 60% fail within the first five years, often due to gaps in competencies that change as the organization evolves. Objective: This study proposes and validates a dynamic competence model for software startups, aligned with the Crowne lifecycle framework comprising Startup, Stabilization, Growth, and Maturity stages. Method: A mixed methods approach was applied, combining qualitative interviews with quantitative surveys. The study identifies evolving competencies across three domains: business, architecture, and innovation. Results: The findings reveal that competencies shift from being “desired” to “required” as startups progress through lifecycle stages. In the Startup stage, business competencies such as corporate structuring are essential, while project management and customer support become critical during Growth and Maturity. Technical competencies like programming and algorithms are vital early on, with advanced skills such as application security gaining importance during scaling. Innovation competencies, particularly problem solving and persistence, remain consistently critical, while creative and abstract thinking change in emphasis as startups mature. Conclusion: The dynamic competence model addresses gaps in static frameworks by offering actionable insights for practitioners to prioritize skill development and resource allocation. It also provides a foundation for researchers to study the evolution of competencies in entrepreneurial contexts. The study recommends extending the model to other sectors and conducting longitudinal studies to enhance its applicability, ultimately contributing to more sustainable software engineering practices and improved startup success.