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This case is used in Darden's required first-year course, “Strategic Thinking and Action.”

In 2015, Steve and Heidi Crandall, the founders of Devils Backbone Brewing, LLC (DBB), were looking back on eight years of unanticipated success and significant growth. DBB had created a destination, a brand, and beer that drew people from all over, and it was the largest craft brewery in its region. The entire community, not just loyal beer drinkers, had supported DBB. In addition to funding and zoning accommodations, so many local residents had built their own economic lives around what had been their “little brewery that could.”

But the success had brought challenges, specifically in terms of growth. DBB was consistently not meeting demand in its existing markets and was receiving complaints about out-of-stocks. The Crandalls and their team had to figure out how to grow with, or preferably ahead of, demand for DBB's product. Should DBB build further capacity despite an already exhausted line of credit? Should it employ a contract brewer despite the local authenticity concerns such a move might stir up? Or should it just keep trying to manage business within its existing footprint, comfortably serving its loyal customer base?

Upon completion of this case study, students will be able to analyze the interplay between small business growth and innovation in sustainable entrepreneurial success; evaluate factors influencing the adoption of technological innovations within startups; and decide on the optimal technological innovation for achieving sustainable growth in a startup.

This case study is about Liliana, a young Colombian entrepreneur. She had to decide how to innovate in her process of providing regulatory compliance and due diligence consulting services. According to Law 1778 of 2016, compliance and due diligence services became mandatory for companies with international operations in Colombia. Lemaître, Liliana’s venture, provided this service in an artisanal way. However, her market required the incorporation of technologies. Liliana must choose what to automate in her process and what to keep traditional. Not innovating meant Lemaître would be unable to grow, causing the sustainability of the business would to be at risk.

This case study is suitable for use for master of business administration students and in executive education short courses.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.