A Kauffman Foundation study shows that innovative startups are largely founded by users who create products for their own use and then commercialize them -- an inspiring statistic that bears witness to the fact that innovation is closely related to democratic entrepreneurship and economic growth.
A study released today by the Kauffman Foundation looks for the first time in any significant detail the statistics on “user-entrepreneurs” -- entrepreneurs who make products for their own personal use -- and found that these types of entrepreneurs were particularly prevalent in innovative startups, comprising 46% of innovative startup founders.
The study tells us what we have known anecdotally for some time - innovation is intuitive, personal, and easy to sell. User entrepreneurs are not only more likely to get venture capital financing from the outset for products they build with a business purpose than other kinds of startups, but those who create their products for personal use are also more likely to have women and minorities as founders.
Read more about the study here. We’re looking forward to seeing more research that hones in on the amazing potential of bottom-up innovation.