Received: 2020-09-20  |  Accepted: 2021-02-23  |  Published: 2021-06-30

Title

Business models of start-ups and their impact on the sustainability of nascent business


Abstract

Start-ups are an attractive business phenomenon because they offer opportunities for personal self-realization and extraordinary business growth. The survival and sustainability of start-ups depends mainly on the quality and development of their business model. However, this assumption must be confirmed by the field research. Field research dealt with the personnel background of the business, the business idea, the structure of the business model, the impact of quality and development degree of business model on start-up performance. Each start-up was individually examined on the basis of a structured questionnaire and a personal interview with the founder. Start-up founders are relatively young and educated, but without relevant business experience. The originality of business ideas is approaching the European level, but the evidence about it is superficial and the degree of protection of ideas is low. The level of quality and development of business model blocks is unbalanced. The most developed block is the customer value proposition/product, the least developed block is the revenue streams. The business model affects the performance of the start-up, but in a small intensity and efficiency only. The examined start-ups are slow in their development and fail to sufficiently monetize the results of their efforts. Research has revealed new and original insights into the structure of the business model of start-ups, the links between the quality of blocks and their stage of development, the impact of the business model on start-up performance or sustainability, and identified some weaknesses of start-ups. Faster development of business model and purposeful selection of partners and effective cooperation with them would probably eliminate at least some of the shortcomings of the start-ups under investigation.


Keywords

start-up, business idea, business model, canvas, business performance, sustainability of business


JEL classifications

M10 , G24


URI

http://jssidoi.org/jesi/article/808


DOI


Pages

29-52


Funding

This research was supported by the Nadácia Manažér/Foundation of Manager, Faculty of Business Management, University of Economics in Bratislava, Slovak Republic, grant number 1/18. In addition, this research was supported by the Scientific grant agency of Ministry of Education of Slovak Republic and Slovak Academy of Sciences (VEGA), grant number 1/0063/19.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Slávik, Štefan
University of Economics in Bratislava, Bratislava, Slovakia https://euba.sk
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Bednár, Richard
University of Economics in Bratislava, Bratislava, Slovakia https://euba.sk
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Hudáková, Ivana Mišúnová
University of Economics in Bratislava, Bratislava, Slovakia https://euba.sk
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Zagoršek, Branislav
University of Economics in Bratislava, Bratislava, Slovakia https://euba.sk
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Journal title

Entrepreneurship and Sustainability Issues

Volume

8


Number

4


Issue date

June 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

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References