Importance of Systematic and First Mover Approach in Startups

Abstract :

Startups are small newly founded companies in the process of developing a viable business model. Startups usually have a potential of exponential growth while having unclear future as they are providing a new product and creating a new market. In this paper we present results of our three-year long research where we studied over 70 startups using regular one on one interviews with the founders. The obtained data were processed using descriptive statistic methods. First we expected to find some evidence that would be beneficial for startups to have systematic approach and first mover approach as well. We found no conclusive evidence of such benefits in either approach, so we have to stay by the null hypothesis what has very interesting implications for these young companies in the unstable environment as well. Our results create options for an alternative approach like pivot and trial and error and uncovering opportunities for companies that do not have global first mover advantage but could take advantage of regional one.