SEARCHING FOR BUSINESS MODEL BY EDTECH STARTUPS IN ADULT EDUCATION SEGMENT ON THE RUSSIAN MARKET

Abstract

In  the article, the author attempts to identify the scalability factors of Russian EdTech startups, as well as offer recommendations for building a scalable business model. As a result, the author identified five groups of factors affecting the business model scalability and, somewhat, the success of an EdTech startup. It is especially important that this groups of factors correspond to the most important business model elements of an early-stage startup: the market (or “Customer segments”), the product (or “Value Proposition”), customer relations, distribution, as well as resources regarding the team and investments. Such a complex set of factors interconnected with the main elements of the business model can become a tool for making more effective management decisions, reducing entrepreneurial risks, and increasing the success possibility of an educational project. It was also discovered that copying the leader’s business model is not a relevant strategy for an educational startup and the subscription model does not affect success. On the contrary, the orientation to the global market, the key market trends exploitation, and high-quality distribution and promotion affect scalability and success.