Framework for developing entrepreneurial business models: Theory and practical application
1 University of Chicago Booth School of Business, USA.
2 Independent Researcher, Australia.
3 Department of Agricultural and Environmental Sciences, School of Biosciences, University of Nottingham, UK.
4 Independent Researcher, Lagos Nigeria.
5 Ulster University, United Kingdom.
Review Article
Global Journal of Research in Science and Technology, 2024, 02(01), 013–028.
Article DOI: 10.58175/gjrst.2024.2.1.0046
Publication history:
Received on 27 July 2024; revised on 11 September 2024; accepted on 13 September 2024
Abstract:
A framework for developing entrepreneurial business models is crucial for guiding entrepreneurs from conceptualization to practical application in a dynamic market environment. This review outlines a comprehensive framework that integrates theoretical concepts with practical approaches to help entrepreneurs create robust and adaptable business models. The framework is grounded in a synthesis of contemporary entrepreneurship theories and practical insights drawn from case studies of successful ventures. It begins with a theoretical exploration of foundational business model components, including value proposition, customer segments, revenue streams, and cost structures. By leveraging established models such as the Business Model Canvas and the Lean Startup methodology, the framework provides a structured approach for entrepreneurs to design and validate their business models. A key component of the framework is its emphasis on iterative development and validation. Entrepreneurs are encouraged to employ lean principles, such as rapid prototyping and customer feedback loops, to refine their business models. This iterative process helps in adapting to market changes and customer needs, reducing risk, and improving the likelihood of success. The framework also incorporates strategic analysis tools to evaluate market opportunities, competitive landscape, and potential challenges. Practical application is emphasized through detailed guidelines and tools for each stage of business model development. This includes methodologies for conducting market research, identifying key resources and partnerships, and establishing operational processes. Additionally, the framework addresses the importance of financial planning and risk management, offering practical advice on funding strategies and contingency planning. The paper also highlights the significance of contextual factors, such as industry trends, regulatory environment, and technological advancements, in shaping business models. By incorporating these elements, the framework provides a holistic approach to entrepreneurial business model development. In conclusion, the proposed framework serves as a valuable guide for entrepreneurs seeking to develop and implement effective business models. It combines theoretical insights with practical tools and strategies, enabling entrepreneurs to navigate the complexities of the business landscape and achieve sustainable success. This approach not only enhances the strategic planning process but also fosters innovation and adaptability in an ever-evolving market environment.
Keywords:
Framework; Practical Application; Theory; Developing; Entrepreneurial Business Models
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0