Experimentation In Entrepreneurship Essay

Experimentation is a real world practice which is practiced everywhere and is always happening. Teaching this involves lot of patience and practice. Many international business schools across the world offer entrepreneurship courses but unfortunately, they are usually confined to a classroom, not a lab. This makes it difficult for students to actually practice experimenting. By definition, the practice of experimentation in entrepreneurship is to “acquire knowledge germane to entrepreneurship” by actively experimenting in hands-on projects, and learning by doing. For example, concept tests help to estimate consumer reactions to a product or service idea before committing substantial funds to it.

Entrepreneurship research is on the rise but

First, the actual distribution of returns in such ventures has a low median value but very high variance. Most new ventures fail badly, but some turn out to be widely successful. Second, even for professional investors or managers making resource allocation decisions, it is impossible to know in advance which ideas will work. How entrepreneurs and investors respond to these inherent challenges has important implications for their own success and also for the broader economy in terms of the “best ideas” being commercialized. To study this point, it is important to separate two frames of reference regarding experimentation. The first relates to economic experimentation in a Darwinian sense, which is the natural starting point for most economists. In this conceptual model, new ventures compete with existing products and technologies, and the ensuing competition leads to the survival of the fittest, just as Google surpassed its early rivals due to its superior technology. This competition can be described as experimentation at the level of the economy. In settings where the best approach among several options is unknown, a great benefit of market-based economies is that winners are often chosen by consumers and