Applying the hypothesis-driven approach to entrepreneurship : a case study

Abstract

Most start-ups fail. The recent emergence of tech ventures with their inherent short time-to-market and fast growth, induced the development of a strategy aiming to minimize the risks attached to starting a business - the so-called hypothesis-driven entrepreneurship approach. Its concepts are spreading among companies, but as it represents a rather new thinking, its potential and implications are often not fully clear. To date very little dedicated research exists regarding the viability of the proposed theory and methodology when applied empirically in a real world setting. This thesis is comprising a case study incorporating the hypothesis-driven approach. The reader is first provided with an initial introduction to relevant background theory. Subsequently, the business idea underlying the case is presented: the vision for a web platform aiming at the automotive sector is introduced. It shall enable users to get a thorough and complete market overview of available new passenger cars with respect to their fundamental desires. Users shall also be provided with the ability to compare relevant cars in-depth. By iterating through all formal process steps, suggested as part of the hypothesis-driven approach, the above presented business idea is advanced during the course of this thesis. The findings and lessons learned in the process, combined and contrasted with the findings stemming from approaches other researchers have taken, are versatile. It is shown that the hypothesis-driven approach to entrepreneurship is generally well applicable within a real world setting. Certain weak spots are determined: especially incurred by the use of a multi-sided platform approach, as well as the existence of an expensive key resource, considerable issues while applying the approach have been encountered. To overcome certain process limitations, a revised process underlying the methodology is proposed.