The ongoing digital revolution has challenged organizations and individuals to foster new mindsets. This also impacted small businesses, so startup culture has been growing exponentially due to the changes we are experiencing. Today, developed countries like the United Kingdom have understood the importance of small businesses in a well-functioning economy and encourage their startup environment by offering tax relief. Let’s have a look at the culture that entrepreneurs have created and how it impacts our society.
Startups’ impact on innovation
For years, when thinking of innovation and business development, the first thing that came to people’s minds has been the impact that big corporations have through their R&D efforts. However, the last couple of years have proven us that small startups have the means to create reliable innovation too. In addition to this, startups had a great impact on the consumers by offering targeted goods and services, tailored for specific needs. As a small company, success can be achieved without corporate sales numbers. Investing time and development resources in a niche market is easier, as big players are more interested in targeting bigger markets. Therefore, a startup that offers a specific solution can become the go-to choice for customers who could not have their needs met by using mainstream products.
New opportunities for investors
The biggest problem that small entrepreneurs have encountered is finding the funding that is necessary prior to the implementation of their solutions. The startup culture has had a big impact on investors’ mindset. Big companies like Airbnb, Uber or Bird have all started as small businesses looking for someone willing to invest in their solutions. Nowadays, the average investor wants his money to secure a part of the next big thing in his sector of choice. By investing in early-stage businesses, investors now have the chance of influencing the way innovation is created. The most important thing they understood is that if you want to be in the management board of a billion-dollar company, it’s ideal to spot it when it’s still looking to get noticed.
Contributing to a free market economy
Startups are essential to a free market economy. By having small companies gaining parts of the market, monopolies are much easier to be avoided. A well-functioning economy needs to be able to offer prices and consumer goods that are dictated by the people’s need and behavior. If a market is hard to access, only large corporations are the agents who have the capital needed to control it. In this case, consumers are unsatisfied, but have no choice other than overpaying or settling with products that are not tailored to their demands. Startups, if funded properly, can help consumers avoid this scenario.
Changing the work environment’s values
Ever since small businesses started being so popular, the work environment shifted towards a different set of values. These values apply differently from company to company, but in most cases they follow the same pattern, which is to get the best out of employees for a great customer experience.
Therefore, one of the key values found in a startup work environment is teamwork. Being a small, limited-resources business may be challenging because of the amount of work divided to a reduced number of employees. However, a good entrepreneur knows how to motivate his employees in order to make them work together for an improved efficiency.
Some other values we can find in small businesses’ dynamics are the constant learning and problem-solving processes. Many startups offer innovative solutions and take a shot at tapping a new market environment. In this field of activity, not all variables are known and every day comes with a new challenge. Therefore, these two values now play a very important role in the workplace.
The business world today looks almost nothing like it looked two decades ago. Things change every day and new solutions appear in unexpected places. The startup culture represents the bridge that links consumers regardless of their needs to the innovation that is being created.
The above references an opinion and is for educational information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Please click here to read the full risk warning.
Follow us on Twitter