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Business development services (BDS) are recognised for supporting business expansion, but their effectiveness in startups with scarce resources remains unclear. This study examined the direct and indirect effects of financial management, marketing management, and business planning and strategy on startup success. It also tested whether quality of service mediates the effects of these internal services on external market performance. The study used a quantitative, descriptive and analytical design to collect data from 384 startup founders and managers in Yemen. Structural equation modelling (SEM) tested the conceptual model linking BDS to financial performance, market penetration, and innovation and product development. Business planning and strategy emerged as key drivers of financial performance and innovation. Conventional marketing management had a negative effect on product innovation, suggesting a “resource drain” in new ventures. Financial and marketing services affected market success only indirectly, through quality of service. Building on prior research focused mainly on direct effects, the study identifies quality of service as the principal mechanism linking financial and marketing support to startup success. By distinguishing that mechanism from the direct contribution of strategic planning, the study extends the resource-based view (RBV) and service-dominant logic to startups in an emerging economy.
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AL-Maamari et al. (2026) studied this question.
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