Chapter 4

What we know for sure

‘It’s the business model, stupid!’

Esther Dyson

The biggest problem with business models is that we do not really know why some business models work whilst others fail. To date, the scholarly research on business models has not produced clear methods for measuring business model components, processes or outcomes.

For example, there is no evidence that entrepreneurs that use a business model canvas are more likely to successfully launch a venture than those who do not use a canvas. There is no research that clearly demonstrates the requirements for a ‘new’ or ‘innovative’ business model.

Some research studies suggest that innovative business models are more profitable than extant business models, but there ...

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