Entrepreneurial Lean Startup: Challenges, Examples, and Recommendations

1Entrepreneurial lean startup
Running head: ENTREPRENEURIAL LEAN STARTUP
Entrepreneurial lean startup
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2Entrepreneurial lean startup
Abstract
The entrepreneurial process of new venture startup, growth and harvesting the venture
face many challenges. Newly emerging concepts include the lean startup, which started to be
globally applied in all types of industries and different companies sizes, is discussed. The
challenges that entrepreneurs face, examples from the practical world and recommendations to
entrepreneurs to overcome the challenges are also analyzed.

3Entrepreneurial lean startup
Contents
Introduction......................................................................................................................................4
First: Startups theories.....................................................................................................................5
Second: The lean startup..................................................................................................................5
Third: Challenges of startups...........................................................................................................8
Fourth: Examples from the practical world.....................................................................................9
Fifth: Recommendations................................................................................................................10
Conclusions....................................................................................................................................10
References......................................................................................................................................11

4Entrepreneurial lean startup
Introduction
The startup process of new venture involves copulation in activities of idea creation,
product development and the launch of the new business. The business start-up model
represented by Shook et al. (2003) as cited in Drnovšek, Wincent, & Cardon (2010), consists of
four steps. It starts with obtaining information to be able to start his business. Then he identifies
the opportunity to be exploited. Followed by making the decision of exploitation of one or more
opportunity. The final step is to create the venture, as the entrepreneur assembles the resources
and infrastructure required to start his business. This model is developed according to the social
cognitive theory, which assumes that individual success could be achieved at different activities.
Entrepreneurs are able to fulfill their goals through interrelated tasks, including the
environmental scanning, information acquisition, classification and sharing to facilitate the
organizational learning. Entrepreneurs focus on technology development, market research,
communicating with the key stakeholders and testing prototypes. Entrepreneurs who have higher
levels of self- efficiency beliefs for success are more likely to achieve higher levels of
performance on exploiting opportunities (Drnovšek, Wincent, & Cardon, 2010). Short et al.,
(2010), argue that the rate of successful entrepreneurship is low. A substantial number of
entrepreneurs failed to reach a reasonable level of achievement in a study conducted to measure
the entrepreneurial success. Challenges occur in common among the startup ventures. Although,
new approaches started to emerge to facilitate the startup process, including the lean startup. The
following section discusses the startup theories, the emerging concept of lean startup, the
challenges that entrepreneurs face, examples from the practical world and recommendations to
entrepreneurs to overcome the challenges.