Entrepreneurship in Ecuador: Application of Lean Startup methodology in local entrepreneurship

Abstract

The Lean Satartup method, based on Toyota´s Lean Manufacturing model,  reduce failure by validating demand before developing a product. The objective of this research is to analyze the degree of application of the Lean Startup principles in the 100% cocoa paste product produced by the Guayacán Unidos association of the Pichincha canton. This study applied a methodology was applied, and the interview technique through intentional sampling was used. The results revealed that the association began with an unvalidated hypothesis, which led to the development of an undemanded minimum viable product such as 100% cocoa paste. However, this product was launched on the market without prior interaction with potential customers, which resulted in very low sales and insufficient economic returns for producers. Based on the analysis and learning obtained following the recommendations of Erick Ries, creator of the Lean Startup method, two possible decisions were identified in such situations: preserve the current strategy or pivot in a new direction. In this case study, the company Guayacán Unidos chose to pivot, adjusting its business strategy to better align with the needs and preferences of the market.