Software startups face with multiple technical and business challenges, which could make the startup journey longer, or even become a failure. Little is known about entrepreneurial decision making as a direct force to startup development outcome. In this study, we attempted to apply a behavior theory of entrepreneurial firm to understand the root-cause of some software startup's challenges. Six common challenges related to prototyping and product development in twenty software startups were identified. We found the behavior theory as a useful theoretical lens to explain the technical challenges. Software startups search for local optimal solutions, emphasize on short-run feedback rather than long-run strategies, which results in vague prototype planning, paradox of demonstration and evolving throw-away prototypes. The finding implies that effectual entrepreneurial processes might require a more suitable product development approach than the current state-of-practice.

The main principle of the Lean Startup movement is that static business planning should be replaced by a dynamic development, where products, services, business model elements, business objectives and activities are frequently changed based on constant customer feedback. Our ambition is to empirically measure if such changes of the business idea, the business model elements, the project management and close interaction with customers really increases the success rate of entrepreneurs, and in what way. Our first paper; "Does Lean Startup really work? -Foundation for an empirical study" presented the first attempt to model the relations we want to measure. This paper will focus on how to build and set up a test harness (from now on called the Entrepreneurship Platform or EP) to gather empirical data from Companies and how to store these data together with demographical and financial data from the PROFF-portal in the Entrepreneurial Data Warehouse (from now called the EDW). We will end the paper by discussing the potential methodological problems with our method, before we document a test run of our set-up to verify that we are actually able to populate the Data Warehouse with time series data.

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Purpose This study aims to explore the motivations and business ideation processes of 776 entrepreneurs from three diverse cohorts of technology, youth and arts entrepreneurs. Design/methodology/approach Using an inductive approach inspired by grounded theory, observations resultant from the use of a Web-based digital test environment are openly coded, in which 776 individual entrepreneurs have stated their objectives for engaging in entrepreneurship and performed a business ideation process. Findings The study inductively derives a typology of objectives types – “GET GIVE MAKE LIVE” – and finds that beyond the pursuit of profitable opportunities, there is considerable variation, complexity and combinations to the reasons why individuals engage in entrepreneurship. A total of 76 percent of the population in this study have more than one objective, with 48% having more than one type of objective. While the arts entrepreneurs tended to engage in entrepreneurship to “LIVE” and the tech entrepreneurs were more inclined to “GET,” the most frequently observed objective type in all cohorts was to “MAKE.” A total of 74 percent of the entrepreneurs took an effectual approach and began defining their business idea with their core competency, yet technology entrepreneurs were the most likely to start by defining their key market. Practical implications Entrepreneurship educators, trainers and helpers should refrain from a standardized approach which assumes that entrepreneurs share the same set of singular motivations. Interventions might benefit from a student-centered program which promotes reflection and articulation of the entrepreneurs’ objectives and their diversity. Originality/value This study answers the call for research to embrace entrepreneurial diversity and compliment previous explorations of entrepreneurs’ motivations through an empirically grounded study of three diverse cohorts of entrepreneurs.

Startups is a popular phenomenon that has a significant impact on global economy growth, innovation and society development. However, there is still insufficient understanding about startups, particularly, how to start a new business in the relation to consequent performance. Toward this knowledge, we have performed an empirical study regarding the differences between a Resource and Competence View (Internal) vs Environment and Market View (External) when defining a Business. 701 entrepreneurs have reflected on their startups on nine classes of Resources (values, vision, personal objectives, employees and partners, buildings and rental contracts, cash and credit, patents, IPR's and brands, products and services and finally revenues and grants) and three elements of the Business Mission ("KeyContribution", "KeyMarket" and "Distinction"). It seems to be a tendency to favour the Internal View over the External View. This tendency is clearer in Stable Economies (Europe) than in Emerging Economies (South Africa). There seems to be a co-variation between the tendency to favour the Internal View and the tendency to focus on adding Resources. Finally, we found that an order-based analysis seems to explain the differences between the two views better than a number-based method.