Prevalent business model elements in the startup stage

Abstract: This study aims to discover the use and benefit of business models in the early stages of startup businesses. The researchers focused on the professional services and retail sales industry and interviewed entrepreneurs from two countries as their case study in order to assess the success of business models through the first hand experiences of the entrepreneurs as they applied business models in their startup companies. Purpose: The purpose of this thesis is to find out how the business model framework is used by small firms in the startup stage. This academic work also aims to increase the significance of the theory described here with the help of a qualitative study of a particular situation: the study of the business model structure built by entrepreneurs in the startup stage of their small firms, all of them belonging to the service sector. Will be taken as an example two developing countries, considering that their economies are tightly hinged on the success of small firms in the service sector, which accounts for about 60% of their economy. The aim is to explain among the main elements of a business model, which are the most relevant when starting a company, for a further value creation and to what extent does the business model framework benefit them. Research Implications: This study also continues the pathway of research on business models and entrepreneurship, in conjunction with the empirical investigation of companies willing to be measured in terms of their performance, study that might require time and resources but could be done as future research to answer the question on whether there is a connection between performance and the architecture of the business model. Practical Implications: The practical implications of this study contribute to the way entrepreneurs would do business in the startup stage in their firms. The use of business models may have a huge impact in the overall success of the firm in its startup stage, thereby contributing positively in the economy of a country.