Business Model Canvas Application in Start-up Stage Business Developments - Constraints and Challenges
Purpose: This paper examines the effectiveness of the Business Model Canvas (BMC) in addressing the unique challenges start-ups face during their development. By analysing both the benefits and limitations of the BMC, it aims to assess its suitability for early-stage companies. Design/Methodology/Approach: The study utilized an exploratory qualitative methodology, focusing on the experiences of Polish entrepreneurs to examine the application, benefits, constraints, and challenges of the BMC. Data were collected through focus group interviews and analysed using thematic analysis to extract key themes and patterns. A purposeful sampling approach ensured participants were familiar with the BMC, allowing for a detailed exploration of its perceived value and challenges in early-stage startup business development. Findings: The study reveals that while the BMC is valued for bringing clarity and visualization to business concepts, its integration varies among entrepreneurs, often influenced by their familiarity with strategic tools and business model complexity. Many entrepreneurs found it helpful for the startup stages, as it simplified strategic planning and fostered team alignment. However, the BMC’s structured format was sometimes viewed as overly rigid, with limitations in capturing complex or rapidly evolving business environments, leading some to prefer more adaptable frameworks. Practical Implications: The findings indicate that the BMC improves clarity for startup businesses that use it by providing a structured, visual framework. This enhances the ease with which entrepreneurs can conceptualize and communicate their business models, ultimately promoting more efficient decision-making processes within teams. For entrepreneurs, the BMC’s demand for regular updates to remain effective highlights a resource-intensive requirement. Originality/Value: By documenting the constraints and challenges of the BMC, this study sheds light on the reasons why some entrepreneurs resist its adoption. This helps in identifying and addressing specific barriers, like lack of training and complexity concerns, which hinder the BMC's wider acceptance. These insights, while context-specific, offer a foundation for developing more universally applicable strategies to support start-ups in refining their business models.