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Why Entrepreneurs Should Think Like Scientists

Harvard Business Review · Article · 1 Jul 2024 · Empirical research · Paywalled · Editor's rating: No stars

Startups that formulate and test hypotheses like scientists earn more revenue and pivot away from bad ideas more readily than overconfident peers.

Summary

In a randomized field experiment with 116 Italian startups, Gambardella and colleagues gave one group standard market-feedback training and a second group additional training in building predictive frameworks and rigorously testing hypotheses like scientists. The scientific-method group generated more revenue and pivoted away from unviable ideas more readily than controls, without any rise in early dropout.

Editor's opinion

Interesting founder-decision-process finding, but a 116-firm RCT on individual entrepreneur behavior isn't a firm-strategy insight.

Key concepts

Scientific method for startups · Hypothesis testing · Pivoting

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