Entrepreneurial Success Factors for Next-gen Startups Challenging the Traditional Food Industry - A Qualitative Study of New Ventures within the Growing Food Tech Sector

Abstract

Times are changing. The food industry is expected to experience a total revolution of the current status through the emergence of new business models, new value chains and food products, putting emphasis on sustainability and health. Due to the large negative environmental impacts caused by the current food system, the global food industry is pressured to change. New solutions are needed, which cannot be found within large, established companies. In fact, entrepreneurship has proven to be an important driver for innovation and sustainable development of the society, the economy and the food industry. Therefore, it is of interest to examine startups within the fast growing next-gen food and beverage industry. The aim of this research is to investigate how the success factors in each entrepreneurial element of the integrated framework outlined by Song et al. (2008), are reflected in next-gen food and beverage startups on the Swedish market. This was achieved through examining successful startups within this specific industry. This thesis employs a qualitative approach by a multiple case study of four Swedish startups within the next-gen food and beverage industry, as well as two interviews with industry experts. The data has been collected through semi-structured interviews with management representatives from each company. This study concludes that the entrepreneurial elements in the integrated framework, created by Song et al. (2008), are all relevant for the Swedish next-gen food and drink startups. Under each element, the factors suggested by Song et al. (2008) have been adapted to reflect startups within the next-gen context. As such, this thesis provides an adapted framework with relevant factors linked to each element. The framework highlights factors that are suggested to have an influence on the success of these startups. Some factors that were identified as extra relevant for the next-gen food and beverage industry include; 1) Entrepreneurial Team: Academic Background, 2) Entrepreneurial Opportunity: Market entry timing and Change in consumer demands, 3) Entrepreneurial Resources: Access to funding and resources, The right fit of resources and investors and Policies, and lastly, 4) Organizational and Strategic Fit: Sustainable Entrepreneurship, Competitive strategy, Product innovation & quality, and Lifestyle brands.