Lean Startup Intro

Question 1

Academic definition of a startup

Answer 1

The creative destruction process of innovative goods and services, new and expanded markets, and improved production methods, organizational structures and supply resources leading to a competitive barrier to entry and economic rent (profit). (Montanye 2006)

Question 2

Harlan’s/ Steve Blank definition of a startup

Answer 2

“A startup is a temporary organization used to search for a repeatable and scalable business model.”

Question 3

A Startup is NOT

Answer 3

♠ An ongoing business (3-5-10 years max)
 The company grows up or..
 An exit event occurs or company death.
♠ A low-risk/well understood franchise or established business (Mom & Pop)

Question 4

Academic definition of entrepreneurship

Answer 4

“someone who specializes in taking judgmental decisions about the coordination of scarce resources” while engaging in creative destruction. (Casson 2003, 19-20)

Question 5

The general definition of an entrepereneur

Answer 5

Entrepreneurs, in the purest sense, are those who identify a need—any need—and fill it. It’s a primordial urge, independent of product, service, industry or market.