The business model

Abstract Both theory and practice agree on the idea that entrepreneurial firms can grow, develop, survive, or fail. In particular, the growth that entrepreneurial firms can aspire to is amplified in comparison to that of other firms. By definition, in fact, entrepreneurial firms are new and innovative and they are thus expected to achieve superior performances. Failure is in opposition to voluntary closure and takes place when entrepreneurial firms are pushed out of the market. Development stands for the improvement of firms’ relationships with the external environment, while survival is about persisting on the market (without development). Even if the achieved results depend on the market (how consumers respond to the product/service offered), entrepreneurial firms can try to define ex ante the aim they intend to achieve by defining their business model, that is, how they create value. Of course, according to the ongoing of the market, firms can modify the business model previously set and can even experiment with new business models. Entrepreneurial firms that are beginning their activities can decide on the logic underlying their choices and, in particular, they can choose between novelty (if they aspire to grow) and efficiency (if they aspire to develop), or they can decide to mix these two concepts.The analysis of the business models that entrepreneurial firms can set up enables some advancements in the drawing of entrepreneurship trajectories.

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