The notion that startups usually thrive in developed nations is outdated and should be dealt away with. Countries that are slowly developing or have hit stagnation due to war, hunger, or other factors are the best for startups. The main reason for this is because these countries have a rich reservoir of untapped resources and potential. They also have many unsolved problems that startups can help solve, both for-profit and economy building. Despite startups being small, they have a significant impact on economies globally and can be critical determinants of a country’s economic direction.
A startup is a platform for solving an emerging problem from a local to a global level. The need for creating a startup revolves around the ‘requirement circle’ of society.
More than 600,000 new businesses open each year in the US, according to SBA estimates. In fact, 47.5%, or almost half of the country’s total workforce, is employed by such small businesses.
How startups boost economic growth and development
Unlike existing and established businesses that invest in pre-existing technology, startups come with new technology and incorporate cutting-edge innovations. This makes startups more agile and able to actualize ideas faster than the multilayered corporate bureaucracy. With better technology, startups are better positioned to modify products to a customer’s specifications easily. This could be why tech giants like Google usually acquire startups before using their channels for distribution and increasing their sales. How Google Perfected the Silicon Valley Acquisition
Startups can create new markets or transform pre-existing ones through their products and digitized solutions. Today’s world cannot be compared to how it was a decade ago, especially in telecommunication, with startups like Google, Apple, Facebook, and others identifying a market gap and utilizing it to become tech giants. Their ability to increase competition within the economy and create progressive disruptions has made startups vital elements for the growth and development of a country.
Summing it up!
A country that creates sufficient opportunities for startups to grow is likely to experience a drastic increase in the production of goods and services. Since startups can identify a market gap and bridge it, they strive to satisfy customers with sufficient goods and services in that specific area.
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