Applying Population Dynamics Theory to Entrepreneurial Survival Strategy: The Case of Financial Technologies and Its Promoter1

Abstract

This article attempts to use concepts from the life sciences’ area to the field of business management. The first puzzle for any start-up entrepreneurs is to formulate the starting strategy for their business. Should they aim for the long term or should they focus on the short term? How can start-up entrepreneurs formulate long-term planning when market conditions are unpredictable? Population dynamics theory is used to find some plausible answers to a few such questions. An entrepreneurial venture is like a baby for its founder. In an uncertain environment for life sciences, as we cannot predict or influence which of our offsprings will survive, similarly we cannot predict which business ideas will work for a start-up entrepreneur. This work finds a few interesting clues from the laws of nature by applying them to the emerging commodities exchanges in India, especially the privately-owned Jignesh Shah promoted Financial Technologies baby MCX and state-owned national-level institutions promoted National Stock Exchanges’ baby NCDEX.