Evaluating the Effectiveness of Lean Management Strategies in Service-Oriented Entrepreneurship

Lean management, initially developed within manufacturing sectors such as Toyota's production system, has gained traction across various industries for its emphasis on eliminating waste, improving efficiency, and delivering value to the customer. However, its application within service-oriented entrepreneurship—especially among start-ups and small enterprises—remains relatively underexplored. This research investigates the effectiveness of lean management strategies in service-based entrepreneurial contexts, aiming to evaluate how these approaches influence operational performance, customer satisfaction, and innovation outcomes. The study employs a mixed-methods design, including a systematic literature review and qualitative interviews with 12 entrepreneurs from three service sectors: IT services, hospitality, and consulting. Key lean tools examined include value stream mapping, minimum viable product (MVP) development, 5S, and Kaizen events. Data reveal that lean strategies positively impact performance metrics such as lead time reduction, cost savings, and customer satisfaction. Specifically, MVP and iterative prototyping prove most effective in digital service start-ups, while standardized operating procedures yield significant benefits in hospitality ventures. A comparative analysis highlights that sector-specific customization is critical for effective lean implementation, with IT sectors gaining the most from agility and experimentation, and hospitality benefiting from consistency and employee involvement. Challenges such as cultural resistance and limited lean knowledge are also identified. This study contributes to the growing field of lean service management by offering empirical evidence and practical insights tailored to the entrepreneurial ecosystem. It underscores the potential of lean thinking not just for operational gains, but also for fostering sustainable, customer-centric innovation in service enterprises. Recommendations for practitioners and future research directions are also discussed.