Business Model Innovation and the Lean Startup Approach for Sustainable Entrepreneurial Growth

Abstract

Business Model Innovation (BMI) and the Lean Startup Approach are two transformative frameworks that have reshaped the way entrepreneurship and corporate strategy are understood and practiced. BMI focuses on redesigning the fundamental mechanisms of value creation, delivery, and capture, allowing organizations to adapt to evolving markets and remain competitive. In contrast, the Lean Startup Approach emphasizes rapid experimentation, validated learning, and iterative development, helping businesses reduce uncertainty and avoid costly failures by testing assumptions before fully committing resources. When viewed together, these frameworks create a powerful synergy that benefits both startups and established enterprises. BMI provides the strategic foundation by clarifying what aspects of the business should be innovated or reimagined, while Lean Startup methods supply the operational processes for how these innovations can be effectively tested and implemented. This interplay ensures that creative ideas are not only strategically relevant but also practically validated through evidence-based learning.