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Lean Start-Ups and Creating an Entrepreneurial, Innovating

In: Business and Management

Submitted By ccraig11
Words 1685
Pages 7
Lean Start-Ups and Creating an Entrepreneurial, Innovating Economy
Missouri Southern State University

Abstract Whenever a new venture creation business starts, whether it be a brand new company to a previously established business looking to expand its horizons, failure is almost inevitable. But, thanks to the lean start-up business model, success rates have been increasing and showing great results. The lean business model provides, in a way, a safety net during the testing the hypotheses stages of a new venture to where if failure is detected, corrective action can be taken immediately with minimal risk involved due to testing. In today’s economy, employment can be tricky, thus creating an environment where new venture creation along with a lean business model can help to create an entrepreneurial, innovating economy.

Lean Start-Ups and Creating an Entrepreneurial, Innovating Lean start-ups are becoming more popular, spreading from just young tech ventures to big, already established companies due to better rates of success compared to traditional business models. When companies use lean business models, they lead the way for an economy that becomes based off of innovation. This paper will discuss lean start-ups and the process of creating an entrepreneurial, innovating economy. Schemerhorn and Bachrach (2015) states three stages to the life cycles of entrepreneurial firms that all entrepreneurs encounter. Those stages being the birth, breakthrough and maturity stages (pg. 151). During the birth stage, entrepreneurial firms are, “fighting for existences and survival”, while during the breakthrough stage, they’re, “coping with growth and takeoff”, and finally during the maturity stage, the firm is focused on, “investing wisely and staying flexible,” (pg. 151). Some things that lean start-ups do differently from the typical business model beginning with…...

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