Despite the economic uncertainty brought on by the COVID pandemic, record levels of startup entrepreneurship activity continue to take place in America. In this blog post, we will discuss five key facts about startup entrepreneurship as we dive into the startup market.
According to a study by the Kauffman Foundation, startup rates are at an all-time high, with over 550,000 new businesses starting each month. This is great news for the economy, as startup businesses tend to be more innovative and create more jobs for the community than older businesses.
But launching a startup business is not at all easy. There are many elements that undoubtedly come into consideration, such as the financial, market, and operational aspects of starting a new business.
To kick off a startup on the right footing, arm yourself with knowledge of how exactly the startup entrepreneurship scene works. Moreover, study what the current industry looks like to give you an idea of how to navigate the startup market.
5 Things About the Startup Entrepreneurship Industry
Startup entrepreneurship shows off all the hats you’re required to wear as a new business owner. On any given day your startup might require you to be an operator, designer, or banker, all while also knowing how to market your startup, too.
So if startup life requires wearing so many hats, why is the startup space experiencing such significant growth? Let’s examine why startups are becoming so popular, what kind of businesses are starting up, and how young entrepreneurs contribute to the economy.
#1 Startups are becoming popular because of support and flexibility
So why are startup businesses so popular in America these days? One reason may be society’s tendency to embrace better-informed risk-taking. And the fact that being “your own boss” oftentimes has a nice ring to it.
With the rise of social media and the sharing economy, it is easier than ever for people to connect with like-minded individuals and get started on their business ventures.
For example, platforms like Kickstarter and Indiegogo have made it possible for anyone with a great idea to raise money to start their business. These platforms allow business-minded individuals to gain exposure and network with entrepreneurs or investors.
Another reason why entrepreneurs embark on startup business journeys is that it offers a lot of flexibility and independence. In the past, most people worked for large corporations where they had little control over their day-to-day work priorities.
However, with startup businesses, people now have the opportunity to be their boss and set their own expectations. This is especially appealing to professionals who value freedom and career flexibility.
#2 Tech behemoths are inspiring a generation of entrepreneurs
Thanks to the success stories of tech moguls like Mark Zuckerberg and Bill Gates, more people see entrepreneurship as a viable career option. In fact, 63% of Americans believe that entrepreneurship is a good career choice.
These factors result in startup companies popping up in various industry sectors worldwide. This leads us to our next item, which is about startup companies providing new opportunities to innovators.
#3 Innovative and impactful tech solutions are leading the way
What kinds of businesses are startup entrepreneurs building? A recent trend has been towards businesses focused on solving societal problems, sometimes referred to as “Social Impact Ventures,” such as healthcare or education. This is likely because startup entrepreneurs are generally young people who have fresh ideas about how to tackle societal issues.
Aside from impact-based startups, tech startups are also gaining more traction. Data shows that the technology sector in the United States accounts for 7.9% of the American workforce. And we can attribute these numbers to the tech-based startups dramatically impacting different industries.
#4 Startups create jobs and boost the economy
How are startup entrepreneurs contributing to the economy? One way is by creating jobs. Since the start of the COVID-19 pandemic, tech jobs have doubled in 2019. Startup businesses tend to be more labor-intensive than older businesses, creating more jobs per dollar of investment.
Additionally, startups are often responsible for introducing new products and services to the market, which can positively impact economic growth.
#5 Startup entrepreneurship inspires local transformation
Finally, startup founders often have a positive effect on their local communities, thanks to their tendency to start businesses in underserved areas. How?
By providing jobs and boosting the economic activities of a locality, startup businesses often breathe new life into struggling economies. Aside from creating jobs, startup businesses help to reinvigorate areas and make them more attractive to other businesses and residents. In turn, this transforms the economic and social landscapes, which could ripple into different parts of the country.
Startup Entrepreneurship: Making Waves
Overall, startup entrepreneurship is vital to the American economy. Thanks to the risk-taking culture and flexible career options, early-stage companies are popping up all over the country.
These businesses often focus on solving problems in society, which makes startups an invaluable engine to spark positive change. If you’re thinking about starting your own startup, now is a great time to do it!
Build Your Startup with Full Scale
To learn how to start a tech company, know you’ll need to assemble a team of great software experts. When that time comes, we’ll be here to help (or to point you in the right direction!)
Full Scale helps tech startups build software development teams quickly and affordably. We are a Kansas-based company providing long-term software development services through our offshore arm in the Philippines. With our growth and performance over the past few years, Inc. 5000 recognized us as one of the fastest-growing companies in the United States.
Serial entrepreneurs Matt DeCoursey and Matt Watson founded Full Scale using their vast tech and startup experience.DeCoursey is the top-selling author of Million Dollar Bedroom and Balance Me. Watson founded Stackify after a 150 million dollar exit from VinSolutions. Later on, Watson made another successful exit as Netreo acquired Stackify.
Together, they are the wit and voices behind Startup Hustle, a podcast for entrepreneurs by entrepreneurs. So if you want to build quality software products, be sure to start with experts!