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Startup Development and Innovation Strategies in Transitional Economies
Corresponding Author(s) : Ilxamov Azizbek Yodgor o'g'li
American Journal of Economics and Business Management,
Vol. 8 No. 7 (2025): July
Abstract
This article explores the theoretical and practical foundations of startups and innovative entrepreneurship by integrating classical and modern management theories with current entrepreneurial trends. It highlights the conceptual evolution of entrepreneurship from Schumpeter’s innovation-based disruption and Kirzner’s opportunity recognition to effectuation logic and resource-based views that characterize contemporary startup management. The study addresses the knowledge gap surrounding the institutional and managerial mechanisms necessary to support startups in emerging economies like Uzbekistan, where strategic planning, risk mitigation, and resource optimization remain critical challenges. Using analytical review and comparative synthesis, the paper identifies the structural stages of startup development—seed, startup, early growth, and expansion—while outlining managerial tasks and innovation strategies at each phase. Findings emphasize the centrality of innovation in product, process, and social contexts, and the need for supportive entrepreneurial ecosystems, including business incubators, venture financing, and integrated infrastructure. The article concludes that startups represent a high-potential model of entrepreneurial activity requiring coordinated institutional support and adaptive management strategies. These findings have significant implications for policy, practice, and further research on promoting innovation-led economic growth through startup ecosystems, especially in transitioning economies.
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- [1] Berulava G., Gogokhia T. Complementarities of innovation strategies: Evidence from transition economies //Eurasian Economic Perspectives: Proceedings of the 20th Eurasia Business and Economics Society Conference-Vol. 2. – Springer International Publishing, 2018. – С. 169-192.
- [2] Obraztsova O., Poliakova T., Popovskaya E. The choice of funding sources for start-ups in a transitional economy: The ability to predict in a national context //Форсайт. – 2017. – Т. 11. – №. 3 (eng).
- [3] Peng M. W. How entrepreneurs create wealth in transition economies //Academy of Management Perspectives. – 2001. – Т. 15. – №. 1. – С. 95-108.
- [4] Berkowitz D., Cooper D. J. Start-ups and Transition //Available at SSRN 43242. – 1997.
- [5] BoStaph S. DRIVING THE MARKET PROCESS:" ALERTNESS" VERSUS INNOVATION AND" CREATIVE DESTRUCTION" //Quarterly Journal of Austrian Economics. – 2013. – Т. 16. – №. 4.
- [6] Korsgaard S. et al. A tale of two Kirzners: Time, uncertainty, and the “nature” of opportunities //Entrepreneurship Theory and Practice. – 2016. – Т. 40. – №. 4. – С. 867-889.
- [7] Foss N. J., Klein P. G. Introduction to a forum on the judgment-based approach to entrepreneurship: accomplishments, challenges, new directions //Journal of Institutional Economics. – 2015. – Т. 11. – №. 3. – С. 585-599.
- [8] Foss N. J., Klein P. G. Entrepreneurial alertness and opportunity discovery: Origins, attributes, critique //Critique (March 5, 2009). THE HISTORICAL FOUNDATIONS OF ENTREPRENEURSHIP RESEARCH, Hans Landström and Franz Lohrke, eds., Aldershot, UK: Edward Elgar, Forthcoming, SMG Working Paper. – 2009. – №. 2.
- [9] Ufimtsev L. O., Nikitina N. Yu., “Innovatsionnoe predprinimatel'stvo”, 2020
- [10] I. M. Kirzner, “The alert and creative entrepreneur: A clarification,” Small Business Economics, vol. 32, no. 2, pp. 145–152, 2009.
- [11] N. J. Foss and P. G. Klein, “Entrepreneurial alertness and opportunity discovery: Origins, attributes, critique,” in The Foundations of Entrepreneurship Research, Edward Elgar Publishing, 2010.
- [12] M. McCaffrey, “On the theory of entrepreneurial incentives and alertness,” Entrepreneurship Theory and Practice, vol. 38, no. 4, pp. 891–911, 2014.
- [13] L. Sharma, “A systematic review of the concept of entrepreneurial alertness,” Journal of Entrepreneurship in Emerging Economies, vol. 11, no. 2, pp. 294–322, 2019.
- [14] T. F. L. Yu, “Entrepreneurial alertness and discovery,” The Review of Austrian Economics, vol. 14, no. 1, pp. 47–63, 2001.
- [15] V. H. Storr and A. John, “The determinants of entrepreneurial alertness and the characteristics of successful entrepreneurs,” in Culture and Economic Action, Edward Elgar Publishing, 2015, pp. 157–179.
References
[1] Berulava G., Gogokhia T. Complementarities of innovation strategies: Evidence from transition economies //Eurasian Economic Perspectives: Proceedings of the 20th Eurasia Business and Economics Society Conference-Vol. 2. – Springer International Publishing, 2018. – С. 169-192.
[2] Obraztsova O., Poliakova T., Popovskaya E. The choice of funding sources for start-ups in a transitional economy: The ability to predict in a national context //Форсайт. – 2017. – Т. 11. – №. 3 (eng).
[3] Peng M. W. How entrepreneurs create wealth in transition economies //Academy of Management Perspectives. – 2001. – Т. 15. – №. 1. – С. 95-108.
[4] Berkowitz D., Cooper D. J. Start-ups and Transition //Available at SSRN 43242. – 1997.
[5] BoStaph S. DRIVING THE MARKET PROCESS:" ALERTNESS" VERSUS INNOVATION AND" CREATIVE DESTRUCTION" //Quarterly Journal of Austrian Economics. – 2013. – Т. 16. – №. 4.
[6] Korsgaard S. et al. A tale of two Kirzners: Time, uncertainty, and the “nature” of opportunities //Entrepreneurship Theory and Practice. – 2016. – Т. 40. – №. 4. – С. 867-889.
[7] Foss N. J., Klein P. G. Introduction to a forum on the judgment-based approach to entrepreneurship: accomplishments, challenges, new directions //Journal of Institutional Economics. – 2015. – Т. 11. – №. 3. – С. 585-599.
[8] Foss N. J., Klein P. G. Entrepreneurial alertness and opportunity discovery: Origins, attributes, critique //Critique (March 5, 2009). THE HISTORICAL FOUNDATIONS OF ENTREPRENEURSHIP RESEARCH, Hans Landström and Franz Lohrke, eds., Aldershot, UK: Edward Elgar, Forthcoming, SMG Working Paper. – 2009. – №. 2.
[9] Ufimtsev L. O., Nikitina N. Yu., “Innovatsionnoe predprinimatel'stvo”, 2020
[10] I. M. Kirzner, “The alert and creative entrepreneur: A clarification,” Small Business Economics, vol. 32, no. 2, pp. 145–152, 2009.
[11] N. J. Foss and P. G. Klein, “Entrepreneurial alertness and opportunity discovery: Origins, attributes, critique,” in The Foundations of Entrepreneurship Research, Edward Elgar Publishing, 2010.
[12] M. McCaffrey, “On the theory of entrepreneurial incentives and alertness,” Entrepreneurship Theory and Practice, vol. 38, no. 4, pp. 891–911, 2014.
[13] L. Sharma, “A systematic review of the concept of entrepreneurial alertness,” Journal of Entrepreneurship in Emerging Economies, vol. 11, no. 2, pp. 294–322, 2019.
[14] T. F. L. Yu, “Entrepreneurial alertness and discovery,” The Review of Austrian Economics, vol. 14, no. 1, pp. 47–63, 2001.
[15] V. H. Storr and A. John, “The determinants of entrepreneurial alertness and the characteristics of successful entrepreneurs,” in Culture and Economic Action, Edward Elgar Publishing, 2015, pp. 157–179.