The MVP phase, typically one of the earliest stages in a startup timeline, is integral to business development. It provides startups with an opportunity to test their product or service in the market without the need for heavy investment in resources. This can help startups validate their business model and understand their target audience's needs better. The feedback received from the MVP can drive subsequent development, helping startups build a product that truly resonates with their customers. This phase can also help attract investors by demonstrating the viability of the business concept and its potential for future growth.