start-up entrepreneurs key concerns on path of entrepreneurial innovation
Post on 11-Jan-2017
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Innovation management in the ’startup scene’ vs. IM in academic world
Digitalization changes the worldNational innovations born-global exponential startups (Ismail 2014)?innovation process of digitally-enabled startups is not yet well understood enough
Startup are crucial for our economy and startups are big trend but…
Introduction
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RESEARCH QUESTION:What are the key concerns of growth-seeking entrepreneurs in the
different phases of start-up innovation process?
Main research question
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Context of the studyThe research was conducted as a part of the international R&D&I project(Accelerate ITEA2), which aimed to develop tools to accelerate start-up innovationprocess.Interviews in Slush 2014 – biggest startup event in Europe
Case studyLiterature review on startup innovation processData collection
Short (10-15 minute) semi-structured interviews during SLUSHData analysis
analysed by the three researchers using content-coding and theme based categorization34 entrepreneurs were selected for the detailed analysis
Research design (1/2)
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Phase 0: Idea/vision - the initiating stage of the start-up and its innovationprocess where ideas are generated, initial idea to be implemented is selected,and the vision of the new venture is clarified.
Phase 1: Building MVP– Start-up is building MVP to test the value of thesolution and to understand more about the problem it is aimed to solve. Theaim is to find problem-solution fit.
Phase 2: Validating MVP(s)– Start-up is validating the solution at the marketwith an aim to find scalable business model and to prove product-market fit;
Phase 3: Scaling – Start-up is scaling business (with an aim to go tointernational markets in the context of this study);
Different phases of startup innovation process
Research design (2/2)
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Identified concerns in different phases of startup innovation process
Findings 1 - General
Phase 1:
Building MVP
Phase 2:
Validating theMVP(s)
Phase 3:
Scaling thebusiness
Funding 100% (6/6) 66% (6/9) 31,6% (6/19)
Network Building 33,3% (2/6) 33,3% (3/9) 36,8% (7/19)
Business and strategic capabilities 66,6% (4/6) 44,4% (4/9) 0% (0/19)
Scarce resources (lack of otherresources and capabilities)
16,6% (1/6) 0% (0/9) 31,6% (6/19)
Other concerns 33,3% (2/6) 22,2% (2/9) 15,8% (3/19)
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Funding concerns in different phases of startup innovation process
Findings 2 - Funding
Phase 1:
Building MVP
Phase 2:
Validating theMVP(s)
Phase 3:
Scaling thebusiness
Currently in need of external funding 100% (6/6) 66% (6/9) 31,6% (6/19)Main use of funding
General/respondent didn’t name 50% (3/6) 83,3% (5/6)
Operations 33,3% (2/6)
R&D 16,6% (1/6)
Sales & growth &internationalization
16,6% (1/6) 16,6% (1/6) 83,3% (5/6)
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Managerial implications:• Fundraising should be considered as a key activity• Entrepreneurs who seek business mentors and/or strategic advisors may be
overwhelmed by the numerous support activities that are currently available• Let go to grow - the scaling of the business may not be possible if the CEO
tries to stick to the practices that worked when the start-up consisted only of“three guys in the garage
Managerial Implications
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Policy implications:from the entrepreneur’s perspective support is needed especially ininternational contextstrategic support actions
first time entrepreneurs with technological background express need forbusiness and strategic supportInterestingly interview data shows that start-ups in the scaling phase don’texperience this as a concern anymore (0/19).likely reason is that start-ups in the scaling phase have already considerablebusiness expertise through investors acting in the start-up board or as anadvisor, and often the team has also grown in business capabilities if thefounders have had technical background.
Policy implications
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