THE ROLE OF MINIMUM VIABLE PRODUCT (MVP) DEVELOPMENT IN SHAPING PERFORMANCE OUTCOMES OF NAILAB ACCELERATOR INITIATIVE IN NAIROBI COUNTY, KENYA

Abstract

This paper examined the impact of developing a Minimum Viable Product (MVP) on the performance of startups in the Nailab Accelerator Initiative in Nairobi County, Kenya and whether the process has a quantifiable impact on the final performance of startups. Although entrepreneurship is one of the crucial avenues of economic empowerment, there are insufficient studies articulating the impact of structured Minimum Viable Product (MVP) development on the success of startups in accelerators.  This paper fills this gap by concentrating on the Nailab Accelerator Initiative. Developing a Minimum Viable Product (MVP) can help business owners test their ideas, conserve resources, and get feedback on them prior to investing in large-scale production. Quantitative methods were used, and a descriptive research design was utilised. The target population was 250 trained startups, and the sample size determination table by Krejcie and Morgan (1970) was used to determine the required sample size, which yielded valid responses. Out of 152 questionnaires administered, 131 valid responses were collected, yielding a response rate of 86%. Simple linear regression analysis indicated that there was a statistically significant positive relationship (β = 0.795, p < 0.001). Minimum Viable Product (MVP) development explained approximately 63% of the variance in startup performance, with the model producing an R ² value of 0.633. The results indicate that Minimum Viable Product (MVP) oriented training can assist early-stage entrepreneurs in matching products with market demands. In addition to technical validation, MVP development promoted innovation, adaptability, and increased customer engagement. Startups that took a more iterative approach to testing refined their concepts, entered the market sooner, and were better positioned for growth. This paper has shown that MVP training is not merely a technical resource; rather, it cultivates learning, iteration and intentional adaptation. Incorporating MVP thinking into accelerator programs helps entrepreneurs convert uncertainty into opportunity and ideas into impact.