From Entrepreneur the Arts – Today it’s impossible to know if your startup idea will be a winner without repeated experimentation. To succeed, startups need to make and test predictions about what will and won’t work in their business models. If an element works, then future iterations should retain that practice, but if it does not work, the startup needs to pivot by changing one or more elements until it becomes a success. We have Eric Ries to thank for coining the idea of the entrepreneurial pivot.
As straightforward as it sounds to pivot, its clearly a whole lot harder to do- as evident by the decline in entrepreneurial growth in the United States. According to the Kauffman Index of Entrepreneurial Activity, business creation declined from 300 out of 100,000 adults in 2012 to 280 in 2013. Not to mention the 17+-year flat new venture creation growth rate. Pretty challenging statistics, really, given all the growth in entrepreneurial education programs during the same time period.
Image courtesy of entrepreneurthearts.com