A new study from the University of Surrey has revealed that up to 90% of blockchain startups are likely to fail—but not because the technology doesn’t work.
The real issue, researchers say, lies in poor leadership and weak decision-making, not the blockchain itself.
Published in the journal Operations Management, the study shows that many startup founders don’t have the power, experience, or clear vision needed to lead their businesses through the fast-changing world of blockchain.
Even though blockchain has been praised as a game-changing technology, the research shows that simply using it isn’t enough to guarantee success.
Professor Yu Xiong, one of the study’s authors, explained that what really makes the difference is how founders manage their teams and make decisions.
He says that strong leadership can turn a new idea into a successful company, but weak leadership can quickly drag it down—even if the technology is innovative.
The research found that some startup founders try to make decisions by involving everyone equally.
While this may sound like a good idea, it often leads to confusion, endless discussions, and delays.
For example, if a team can’t agree on adding a new feature to their blockchain product, they may waste valuable time debating instead of moving forward.
To better understand why some blockchain startups succeed while others fail, the researchers studied five companies over a period of five years.
They used interviews, internal documents, and direct observations to look closely at how decisions were made and how each company was managed.
The most successful companies had founders who were willing to take control and make tough decisions quickly.
These leaders also looked for inspiration and ideas from outside the blockchain world, which helped them stay flexible and adapt to market changes. In contrast, the struggling startups got stuck focusing only on blockchain-related ideas and moved too slowly to grow or compete.
Professor Xiong says that startup founders need to focus less on just the tech and more on strong leadership. Encouraging creativity, collaboration between different teams, and fast decision-making can help blockchain companies avoid the common mistakes that lead to failure.
The study calls for a new way of thinking about blockchain. It’s not just a technical challenge—it’s also about people, leadership, and vision. For startups to succeed, founders must step up and lead with confidence, clarity, and flexibility.
