Abstract

This paper examines the role of government policy in the early growth trajectory of startups in North America. The study of the startups indicated that initial financing is the major bottleneck in achieving economic viability. Primarily through interviews, the status of startups in North America, as well as the problems that they face in their early years, is examined with the main goal of understanding their areas of concern and the solutions to them. Nearly 86% of the founders interviewed expressed that the government should actively assist them in their path to achieve unicorn status. The research was analyzed with respect to the history and growth of earlier unicorns in North America, supported by 21 founder interviews. The main issues that the young companies faced were in terms of financial help, which they claimed should be provided by the government in various forms. While the government has invested heavily in research and development incentives and long-term ecosystem building, first-time founders consistently identified grants, funding access, and tax relief as the most required forms of support. It is concluded that even though some programs are offered by the government, the policy effectiveness does not depend on the volume of support offered, but more on the accessibility for early-stage founders.