This research pertains to the investigation of the survival strategies employed by entrepreneurial ventures (EVs), particularly Innovative start-ups (ISs). ISs have a high failure rate, with nearly 90% of them failing during their first year depending upon the entrepreneurial ecosystem in that geographic location. All ISs are exposed to a high rate of failure since they encounter a high degree of uncertainty while pursuing new business opportunities. Thus, failure is a common outcome of entrepreneurial endeavour. Simultaneously, it is essential to sustain ISs since they create value and employment for their nations. Therefore, investigating and identifying suitable survival strategies for ISs is important.

Three research objectives, namely (1) To identify, characterize, and define ISs in the context of Micro, Small and Medium Enterprises (MSMEs) in India, (2) To investigate ISs’ failure causes and propose appropriate survival strategies using Management Accounting Tools (MATs), and (3) To illustrate the survival strategies implemented by an Indian innovative lifestyle enterprise (ILE) by examining them during its founding, growth, and crisis stages (caused due to COVID-19 pandemic).

The main research findings are: (1) Indian ISs can be effectively characterized and distinguished from conventional MSMEs (C-MSMEs), (2) Twenty-two different Management Accounting Tools (MATs) are found to be effective in overcoming ISs’ failure-causes, and (3) The survival strategies to overcome various risk events, uncertainties, and crises by an Indian innovative lifestyle enterprise (ILE) can be grouped under Blue and Red Ocean strategies, different Resilience enhancing techniques (RETs), five constructs of Entrepreneurial Orientations (EO), and some MATs.

The main theoretical contribution of this research is the conceptual model for identifying and characterizing ISs among MSMEs. A conceptual framework relating failure-causing factors and the typical MATs that can enhance the survivability of ISs is also developed. The applicability of Contingency Theory (CT) towards enhancing the survival of EVs is highlighted.
The practical implications of this research are (a) identification of 30 different failure-causes of Indian ISs, (b) identification of a list of 22 MATs that can be used to tackle failure and thereby enhance the survival probability of Indian ISs, (c) identification of the survival strategies employed by an innovative Lifestyle enterprise, and (d) identification, characterization and definition of ISs, which can help policymakers to understand ISs and C-MSMEs better for formulating suitable development policies for their survival and growth.