Traditional approaches to guiding entrepreneurs tend to follow a sequential process, centred on the business plan, and with focus on the start-up phase of the business. This type of approach often leads to a tick box ü approach from the entrepreneur, rather than taking a strategic view of the entrepreneurial advantage and opportunity, then engaging with the target community of stakeholders. This means getting out there into the market in shorter engagement cycles managed within a framework. This assures the entrepreneur and his/her team have contact with customers and stakeholders, can learn and adapt to continuously refine the proposition that optimises its value proposition and scaling capability. In addition many entrepreneurs may have limited previous business experience and/or support ecosystems, hence failure rates remain stubbornly high globally.
A recent study by Harvard Business school indicates that New Venture failure rates are between 30% and 90% depending on how you define the criteria for failure:
- 30% to 40% where investors liquidate and lose most or all of their investment.
- 70% to 80% where the business stakeholders fail to see expected ROI
- 90%-95% where the business declares a projection and fails to meet that projection
This paper proposes and new model that enhances our methodologies for supporting entrepreneurs and the entrepreneurial ecosystem. The model draws from latest thinking relating to “Agile” approaches which first came to prominence in the software development industry in 2001.
By adopting the new model proposed we enable the entrepreneur to create “Agile Advantage” in their new venture and continuously build that advantage through the organisations life cycle.
4th International Conference on Management, Leadership and Governance – ICMLG 2016
Hosted by the Saint Petersburg State University of Economics
St. Petersburg, Russia
14-15 April 2016