---
title: "Minimum viable product and prototyping"
subject: "Entrepreneurship Development"
chapter: 3
key: "semester_7/entrepreneurship_development:minimum-viable-product"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/minimum-viable-product
site: BCT Engineering
---

# Minimum viable product and prototyping

Entrepreneurship Development · Chapter 3: Market Validation

- Asked in: year not given, 5 marks
- Video: [Minimum Viable Product and Pivoting: Crash Course Business Entrepreneurship #6](https://www.youtube.com/watch?v=kmfC-i9WgH0) — CrashCourse
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/minimum-viable-product
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-3

## Question

What is a minimum viable product (MVP)? Explain its purpose, types and how it differs from a prototype.

## Short answer

An MVP is the smallest usable offering that tests customer demand; it differs from a prototype because it is aimed at the market, not at design feasibility.

## Answer

A **minimum viable product (MVP)** is the simplest version of a product that has just enough features to be used by early customers and to give validated learning for the next version (Eric Ries, *The Lean Startup*).

#### Purpose
- Test the key assumption (will customers want and pay for this?) at low cost and time.
- Collect real user data before investing in full development.
- Reduce the risk of building something nobody needs.

#### Types of MVP
- **Landing-page MVP:** a page describing the product with a sign-up or pre-order button.
- **Concierge MVP:** the service is delivered manually to a few customers.
- **Wizard-of-Oz MVP:** the user sees an automated product, but humans work behind it.
- **Single-feature MVP:** only the one core function is built.
- **Explainer video / pre-sales:** demand tested before building.

#### Build-Measure-Learn
```text
   Build MVP --> Measure --> Learn
       ^                       |
       +----- Pivot/Persevere -+
```

#### MVP vs prototype
| Basis | Prototype | MVP |
|---|---|---|
| Aim | Test design or technical feasibility | Test market demand |
| Users | Internal team or few testers | Real early customers |
| Output | Model, may not work fully | Usable, sold or offered |
| Learning | How to build | Whether to build |

**Answer:** An MVP is the smallest usable offering that tests customer demand; it differs from a prototype because it is aimed at the market, not at design feasibility.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. An MVP is:
   A. The simplest version with just enough features for early customers and validated learning
   B. The final product with all features
   C. A drawing of the product
   D. A cheap copy of a rival product
   Answer: A. An MVP is the smallest usable version that yields validated learning. (Key point: MVP definition)

2. What is the main purpose of an MVP?
   A. Maximise features
   B. Test the key assumption that customers want and pay at low cost
   C. Replace market research forever
   D. Obtain a patent
   Answer: B. MVPs test demand cheaply before full development. (Key point: MVP purpose)

3. In a Wizard-of-Oz MVP:
   A. The service is delivered manually and customers know it
   B. Only a landing page exists
   C. The user sees an automated product but humans work behind it
   D. A video is shown
   Answer: C. The product looks automated, but humans do the work behind the scenes. (Key point: Wizard-of-Oz MVP)

4. How does an MVP differ from a prototype?
   A. An MVP tests design; a prototype tests demand
   B. Both test only technical feasibility
   C. An MVP is used only internally
   D. An MVP tests market demand with real customers; a prototype tests design feasibility
   Answer: D. The prototype asks how to build; the MVP asks whether to build. (Key point: MVP vs prototype)

## Related in other subjects

- [Phases of new product design](https://www.bctengineer.com/question.md?key=semester_6%2Fmachine_design_i%3Anew-product-design-phases) — Machine Design I, chapter 3