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.