The BizFilings blog covering business tips and trends.
Is First to Market a Curse?
Published on Apr 8, 2011
Check out 'Is First to Market a Curse?' at 'Time to Start Up,' the small business blog by BizFilings.
The recession has bred a new generation of entrepreneurs. Not only has business incorporation activity been on the rise in recent years as laid-off professionals look to forming a company as a means of returning to work, but young college graduates entering the job market are also progressing entrepreneurial trends.
Last month, the Kauffman Foundation reported that entrepreneurial activity reached the highest level in 15 years in 2010. However, for those in truly innovative markets, there are a few caveats to consider.
Researchers from the University of Utah and Boston University have found that the best time to enter a market is after a few have already been established, Inc. magazine reports.
"If you are second - or third or fourth - to market, you stand a better chance of success by learning from the first guy's mistakes," writes J.J. McCorvey in Inc., referring to the study by researchers Stanislav D. Dobrev and Aleksios Gotsopoulos.
While this finding likely varies from sector to sector - the researchers mainly studied the U.S. auto industry - it will be interesting to observe how it relates to the blossoming group buying business. That market is currently lead by founder Groupon, but rival Living Social has been slowly gathering more and more market share in recent months.