Business model innovation in entrepreneurship

The goal of this paper is to advance the understanding of emerging developments in business model design within the field of entrepreneurship. It is widely known that during the start-up process, entrepreneurs need to set up the boundaries of the business and define the product/service to offer. This is a very complex task, especially for new technology-based companies which usually require large investments and have a limited time span (avoiding product obsolescence) to turn the idea into a full-time venture. Although business model design within the entrepreneurship field is a recent topic, it is gaining a growing attention in the literature. The usefulness and predictable power of business models are expected to help entrepreneurs make more informed decisions, thus increasing the chances of success. This article first tackles the specific problems faced by new technology-based firms, linking their needs with the advantages of having a flexible and well-designed business model. Second, different innovative practices aimed at improving business model design are discussed. The paper ends with some recommendations, stressing the need for future empirical work.