Many start-ups begin with a strong idea, enthusiasm, and a shared vision. Yet, despite this promising start, most fail within the first few years. While external factors such as funding or market timing are often highlighted, internal team dynamics play an equally important role. Problems related to team composition and collaboration are among the most common reasons for failure.
Start-ups operate in uncertain and fast-changing environments where formal structures are often missing. In this context, team roles become an important way to organize work. Team roles are not just job titles, but patterns of behaviour and responsibility that shape how individuals contribute to shared goals. Research shows that clear roles improve coordination and reduce ambiguity within teams (Hackman 2004).
The findings of the thesis support this view. Individuals generally understand their own roles and contributions, but the overall balance of roles within teams is often incomplete. Many start-up teams are built around technical expertise, while key areas such as sales, marketing, or finance remain underrepresented (Tailor 2026).
Even in flexible start-up environments, some level of role structure is necessary. Without it, teams may struggle to prioritize tasks, coordinate actions, and make decisions effectively.
Clarity and complementarity drive collaboration
Having roles is not enough ─ they must also be clear and complementary. Role clarity means that team members understand their responsibilities and how their work contributes to the overall goals of the start-up. When this is achieved, communication improves and work becomes more efficient.
In early-stage start-ups, role overlapping is common and can support flexibility. However, problems arise when overlapping is unintentional. The thesis findings indicate that unclear roles can slow down decision-making and reduce efficiency, even if they do not always lead to direct conflict (Tailor 2026).
Complementarity is equally important. Start-ups require a mix of skills, including both technical and commercial capabilities. A common challenge is that teams focus heavily on product development but lack expertise in areas such as sales or customer engagement. This imbalance can prevent even strong products from reaching the market successfully.
Research also suggests that functional diversity improves start-up problem-solving and decision quality. Teams with complementary educational and professional backgrounds are often better equipped to respond to uncertainty and identify opportunities from multiple perspectives (Horwitz & Horwitz 2007). At the same time, diversity alone is not enough. Teams also need clear responsibilities to avoid confusion and inefficiencies when different viewpoints are brought into decision-making (Hackman 2004).
Roles support success ─ but indirectly
Team roles play an important role in how start-ups function, but they do not guarantee success. Their impact is indirect, as they support collaboration and execution rather than determining outcomes on their own.
The thesis shows that start-up success is influenced by multiple factors, including external conditions, resources, and timing (Tailor 2026). In addition to this, the importance of interpersonal dynamics such as trust, motivation, and commitment. In some cases, strong and well-functioning teams may still fail commercially, while less structured teams succeed due to other advantages.
Another key insight is that roles evolve over time. As start-ups grow, responsibilities become more specialized, and team members must adapt. This requires flexibility and willingness to change. External support from mentors, advisors, and incubators can help teams identify missing competencies and improve their role structure.
Team roles are rarely static
Team roles in start-ups are rarely static. As ventures grow, responsibilities often become more specialised, while founders and team members must adapt to changing business needs. Research on entrepreneurial teams suggests that role flexibility is particularly important in early-stage ventures, where limited resources require individuals to take on multiple responsibilities before structures become more formalised (Vanaelst et al. 2006).
Clear and complementary team roles help improve communication, coordination, and execution. However, their impact depends on how well they are supported by team dynamics, adaptability, and external conditions. Understanding and developing team roles is therefore a practical step for start-up teams aiming to improve their performance in uncertain environments.
Authors
Nilesh Tailor is a BBA student at LAB University of Applied Science in Lappeenranta and an entrepreneur. He is interested in business startup work and team coaching.
Mika Tonder is a principal lecturer at LAB University of Applied Science, unit of Business Administration in Lappeenranta.
References
Distel, A. 2019. Three men sitting while using laptops and watching man beside whiteboard. Image. Unsplash. Cited 12 May 2026. Available at https://unsplash.com/photos/three-men-sitting-while-using-laptops-and-watching-man-beside-whiteboard-wD1LRb9OeEo
Hackman, J.R. 2004. Leading teams. Team Performance Management, 10(3/4), 84–88.
Horwitz, S.K. & Horwitz, I.B. 2007. The effects of team diversity on team outcomes: A meta-analytic review. Journal of Management, 33(6), 987–1015.
Tailor, N. 2026. How Does Understanding Team Roles Influence the Success of Start-Ups in Finland? Bachelor’s thesis, LAB University of Applied Sciences. Cited 29th Apr 2026. Available at https://urn.fi/URN:NBN:fi:amk-202604288199
Vanaelst, I., Clarysse, B., Wright, M., Lockett, A., Moray, N. & S’Jegers, R. (2006). Entrepreneurial team development in academic spinouts: An examination of team heterogeneity. Entrepreneurship Theory and Practice, 30(2), 249–271.
