Managing Startup Enterprises in Emerging Markets

Start-up enterprises have emerged as a socio-economic system for developing the regional economy and linking innovative ideas to consumer segments and large industries. These enterprises have grown over family business firms and are mostly founded on conventional wisdom. Therefore, start-up enterprises have narrow leadership vision and low-profile business models. Based on thorough literature review, this chapter discusses the current scenario of start-up enterprises in emerging markets. It also discusses the entrepreneurial ecosystem, marketing strategies, and Latin American perspectives on start-up enterprises. In addition, general and specific objectives of the study, along with justification for this research study, are presented in this chapter.

Start-up enterprises have a long history in regional business operations and have been thoroughly studied in various research dimensions since the beginning of twentieth century. This chapter critically examines 251 previous research studies to provide literature support for the methodology and data analysis of this study. Some epistemological studies, which date back to 1957, have also been reviewed to support the conceptual background of the study. Literature review has been done in the context of organizational design, marketing strategies, consumer-centric approach, consumer acquisition, consumer buying behavior, consumer segmentation, transaction-based approach, pricing, distribution, serviceability, and entrepreneurial leadership. The literature review has supported ten quantitative research hypotheses and five qualitative research propositions.

This chapter discusses epistemological evolution of small enterprises and markets. It critically examines the theoretical perspectives on entrepreneurship in the context of research contributions of classical schools of thought. Neoclassical philosophy, contemporary rationale, conceptual framework of research, and qualitative research perspectives have been discussed in this chapter. The classical theories suggest that convergence of entrepreneurial knowledge and market ecosystems leads to entrepreneurial development within the socio-economic environment in a region. In the neoclassical school of thought, the entrepreneur is the pivot to mobilize new business by developing new products or to make existing products from a new perspective. Accordingly, this chapter stands as the methodological foundation for the research framework.

This chapter discusses cognitive determinants of entrepreneurial leadership in reference to epistemological evolution of qualitative research. Qualitative information analysis has been carried out using in-depth interviews and analyzing their content. The content analysis leads to validating predetermined research propositions, which reveals that employee openness and organizational flexibility are the key contributors in improving the performance of start-up enterprises (SUEs) in competitive marketplace. The analysis of qualitative information suggests that employee commitment, implementing innovative utilitarian ideas, and effective team culture helps start-up enterprises improve market competitiveness and organizational performance of SUEs. Co-created innovations have the possibility of aggressive expansion with the scope of grabbing high market share in potential markets rather than being confined to niche market with unbranded innovations. This chapter reveals that collective decision-making is a better approach as compared to a leader-driven, top-down decision-making practice.

Successful start-up enterprises tend to co-design products and services by involving consumers and manufacture and market desired products and services at an affordable price. The analysis of data reveals that start-ups gain competitive advantage in providing easy accessibility and availability to its products within a niche market. This chapter analyzes information based on empirical evidences on market orientation and performance of micro-enterprises. Categorical discussions have been held in this chapter on introduction to non-parametric analysis, organizational design, consumer-centric approach, consumer segmentation, transaction-based approach, pricing, distribution, and serviceability. The quantitative information analysis in this chapter validates research hypotheses and reveals that consumer-employee relationship in start-ups is acceptable in general to support their manufacturing and marketing activities within the minimum viable segments.

This chapter synthesizes the results of the empirical research analysis and offers future research perspectives on decision-making process, innovation management, and market competitiveness. Emphasis has been laid on managerial implications in the context of the ambidextrous attributes of start-up enterprises, consumer behavior, market operations, and service-quality relationship. The chapter focuses on effective word of mouth, utilitarian values, and low-cost advantages that help consumers in reinforcing the me-too feeling. Low prices of innovative products in niche markets can create not only personal preferences, but also social consciousness about the products of start-up enterprises (SUEs). Start-up enterprises develop cost-effective, demand-led supply chain management within the minimum viable segment. The price-quality relationship of start-ups tends to develop confidence and buying potential among consumers in ambidextrous market segments.

Small businesses and start-up enterprises (SUEs) have become integrated functionaries in the emerging global business model. Small business is a self-sustaining organization with limited capital and human resources, aiming to generate continuous revenue by major investments. Small business is built on a localized business model, which emphasizes limited sales in local or regional markets while operating through a small number of employees. SUEs are also founded on the principles of low capital and human resources, just like small businesses. However, SUEs emerge as disruptive organizations, with innovation and technology intended to develop an impactful business model. SUEs are oriented toward innovation and technology-led disruption, which may complement various levels of business organizations ranging from small to large business units.