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Low-code entrepreneurship: Shopify and the alternative path to growth

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  • Dushnitsky, Gary
  • Stroube, Bryan K.

Abstract

The past decade witnessed a surge in the availability of low-code tools, where software-based solutions can be developed with limited or no need for writing code. One of the most salient examples is Shopify, which enables a layperson to become a fully-functioning online retailer without ever resorting to writing code. We ask: how do low-code tools affect growth trajectory and entrepreneurial success? How do they change the resources required to scale-up and grow? We explore these questions in the context of the e-commerce sector during the 2010s. Several databases were integrated to construct a sample covering about 400 VC-backed startups; including a detailed profile of their financial, human and software tools. The analyses indicate that Shopify-based startups start life with fewer financial and human resources compared to their e-commerce peers. Yet, despite the leaner beginning, they achieve a similar level of successful exits. The value created per employee, and cash-on-cash return for investors, place Shopify-based startups on par with their peers.

Suggested Citation

  • Dushnitsky, Gary & Stroube, Bryan K., 2021. "Low-code entrepreneurship: Shopify and the alternative path to growth," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000299
    DOI: 10.1016/j.jbvi.2021.e00251
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    References listed on IDEAS

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    4. Nishant Chadha & Viswanath Pingali & Daniel Sokol, 2023. "Small Businesses and Digital Platforms," IIMA Working Papers WP 2023-09-01, Indian Institute of Management Ahmedabad, Research and Publication Department.

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