Hypothesis-Driven Entrepreneurship: The Lean Startup
Thomas R. Eisenmann
Harvard University - Entrepreneurial Management Unit
affiliation not provided to SSRN
Harvard Business School
March 9, 2012
Harvard Business School Entrepreneurial Management Case No. 812-095
Firms that follow a hypothesis-driven approach to evaluating entrepreneurial opportunity are called "lean startups." Entrepreneurs in these startups translate their vision into falsifiable business model hypotheses, then test the hypotheses using a series of "minimum viable products," each of which represents the smallest set of features/activities needed to rigorously validate a concept. Based on test feedback, entrepreneurs must then decide whether to persevere with their business model, "pivot" by changing some model elements, or abandon the startup. This note describes, step-by-step, how to follow the hypothesis-driven approach when evaluating entrepreneurial opportunity; explains how the approach mitigates cognitive biases that otherwise can contribute to poor decisions; and considers conditions that are best suited for lean startup methods.
To describe the rationale for employing a hypothesis-driven approach to evaluating entrepreneurial opportunity and the processes used with such an approach.
working papers series
Date posted: April 9, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.500 seconds