A feasibility study framework for E-business start-ups: a case study on Sxuirrel

Bam, Hendrik (2018-03)

Thesis (MEng)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT: E-businesses that use technology to infiltrate the biggest rising market today, the Millenials, have become more and more popular over the past few years. This market however is very unpredictable and seems easy to infiltrate, but this is not at all the case. Due to lack of knowledge everybody is looking to becoming entrepreneurs by attacking the e-business market. The large number of ebusiness failures, that occur every year, are a good example of the rise in e-business start-ups over the last few years. This creates an opportunity for a tool that can help determine the potential of an e-business start-up before the start-up has started, while simultaneously helps defining the market and idea of the e-business start-up. The objective of this study was to develop a process that could help e-business start-ups to determine if it is worth taking on the challenge of continuing with the start-up. By answering the question of feasibility, start-ups could determine if it worth taking the risk. In this context, the question of feasibility can be answered by the following components: Return on investment of the start-up, the market potential, the acquisition cost and the e-business customer life cycle. The research endeavour investigated the main factors of feasibility, namely market feasibility and financial feasibility. Each main factor was divided into sub-factors that were also investigated. These main and sub-factors are the core of the feasibility study framework. After the framework was set up a validation process confirmed that the feasibility study framework has achieved its goal and can help e-business start-ups, to determine the potential feasibility of the e-business start-up. This resulted in e-business start-up founders as well as incubator liaison seeing the potential of an ebusiness start-up before the start-up was out of the idea phase. The feasibility study framework for an e-business start-up is an important stepping stone towards developing a better understanding of the e-business start-up itself, the e-business start-up world and in what direction the start-up needs to go in order to reach maximum potential.

AFRIKAANSE OPSOMMING: E-besighede wat gebruik maak van tegnologie om die grootste toenemende mark vandag, naamlik die Millennials, te infiltreer, het die afgelope paar jaar al hoe meer gewild geword. Hierdie mark is egter baie onvoorspelbaar en lyk maklik om te infiltreer, maar dit is glad nie die geval nie. Weens 'n gebrek aan kennis wil al hoe meer mense entrepreneurs word en word die e-besigheid mark stormgeloop. Die groot aantal e-besighede wat elke jaar misluk, dui op die styging in e-besigheid start-up getalle die afgelope paar jaar. Dit skep 'n geleentheid vir die ontwikkeling van 'n hulpmiddel wat gebruik kan word om die potensiaal van 'n e-besigheid start-up te bepaal voordat die start-up nog begin en wat terselfdertyd kan help om die mark en idee van die start-up deegliker te definieer. Die doel van hierdie studie was om 'n proses te ontwikkel wat e-besigheid start-ups kan help om vas te stel of dit die moeite werd is om voort te gaan met die aanvang van die start-up. Deur die vraag van lewensvatbaarheid te beantwoord, kan start-ups bepaal of die risiko die moeite werd is om te neem. In hierdie konteks kan die vraag van lewensvatbaarheid beantwoord word deur middel van die volgende komponente: opbrengs op die belegging, die markpotensiaal, die verkrygingskoste en die e-besigheid lewensiklus van die kliënt. Die navorsingspoging het die hooffaktore van lewensvatbaarheid ondersoek, naamlik markvatbaarheid en finansiële vatbaarheid. Elke hooffaktor is onderverdeel in sub-faktore wat ook ondersoek is. Hierdie hoof- en sub-faktore vorm die kern van die lewensvatbaarheid raamwerk. Nadat die raamwerk opgestel is, het 'n bekragtigingsproses bevestig dat die lewensvatbaarheid raamwerk die doelwit bereik het en die e-besigheid start-up kan help om die potensiële lewensvatbaarheid daarvan te bepaal. Dit het daartoe gelei dat stigters van e-besigheid start-ups sowel as incubator skakelpersoneel die potensiaal van 'n e-besigheid start-up kan insien nog voordat dit uit die ideefase is. Die lewensvatbaarheid raamwerk vir 'n e-besigheid start-up is 'n belangrike stap in die rigting van 'n beter begrip van die e-besigheid start-up self, die e-besigheid start-up wêreld en in watter rigting die start-up moet beweeg om maksimum potensiaal te bereik.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103409
This item appears in the following collections: