The term “startups” refers to a specific company that is usually in the early stages of its formation or at the start of their operations. The startup usually established by an individual or several individuals who aim to create or develop specific services or products to introduce them to the market.
These startups are always looking for colossal funding and considerable capital to enable them to continue their business because they started initially with limited resources. Consequently, startups are looking for capital investors to convince them to fund the company and invest in it. In short, the startup does not have sufficient capital or financial resources to move to the next stage of its business because its primary financing has limited capabilities by the founders.
A startup is a small enterprise established by a group of individuals to develop innovative products or services under simple financial conditions. Many people consider It as “the realization of dreams” Because the startup is one of the rare places where the dreams of its founders can become a reality, this dream may turn into a reality not only for its founders but for the whole world as well.
As mentioned, the establishment of the startup begins by an individual or group of individuals with self-financing, intending to benefit from the market demand through the innovation or development of products or services that did not exist but are marketable and can get acceptance in the concerned markets.
Startups – growth as a primary goal
The startup aims to grow and develop in its business and innovations since its inception. Although small companies are preparing to remain small forever, the startup company does not want to stay small. Therefore it is looking from the beginning of its establishment on investors and capital to ensure its continuation and access to global markets.
By definition, a startup is a company that has goals for development, expansion, and growth. Therefore it uses innovations and technological methods to achieve this by developing new products and services needed by the market. The aim of establishing any startup is to expand its business and reach the world markets within a short period.
Just as an inventor creates a product to find a solution to a problem facing humanity, so does a successful startup trying to make the world a better place. The startup solves many of the daily issues we encounter, and if the startup does not aim to take this step, it will remain just an unattainable idea on the ground.
Beginning and history of Startups
As mentioned earlier, the startup is a newly established business activity with limited financial capabilities and resources, and it is characterized by rapid growth. It is looking for substantial monetary financing from people in business and investors. The startup aims to find a solution to problems or meet the market requirements by developing and innovating products or services needed by various business sectors.
Most of the startups are working in the field of technology innovation, such as the Internet, e-marketing, the telecommunications sector, and others. These companies do research to know the market needs, identify problems, and find solutions through innovation, design, and development of products and services that contribute to making life more comfortable around us.
The term startups did not appear recently, but it did spread with the launch of the Internet revolution in the late 1990s. Where at that time, a large number of businesses and companies were established via the Internet, and the e-commerce giant “Amazon” is the best proof of that. The emergence of the Internet during that period and with this rapid spread so-called the “Internet bubble” or “information technology bubble.” Perhaps the reason for this name is the emergence of a massive number of new companies that do business on the Internet only.
This Internet revolution led at that time to a boom in global stock exchanges, and their prices rose to unprecedented records. This event prompted many investors to place their money in these new companies, which later became global companies and listed their shares for public subscription and became publicly owned companies over time.
The first startup in the world
It may be challenging to say that startups began with the Internet era at the end of the last century because it seems that new companies did appear after the Great Depression in the 1930s or even much earlier. But the emergence of the Internet bubble shed light clearly on these companies and gave them global popularity during record periods.
There is no doubt that the first startups to emerge after the Internet era was found in Silicon Valley in the United States of America. IBM, for example, first appeared at the beginning of the last century, specifically in 1911. Still, at the end of the nineties, it had grown to become one of the largest computer and software companies in the world thanks to the massive spread of the Internet. It may not be the first startup, but it is one of the first companies that Silicon Valley was built on, which later became home to the world’s most famous startups.
Alphabet Inc., owner of the popular search engine, Google, maybe the best example of the startups that emerged in Silicon Valley after the Internet revolution. The Google search site was found in 1997, and its emergence has created market importance for companies looking to increase their reach and popularity. Google is a real and successful example of a startup because it started with an idea and developed into what it is today.
So, the Internet age may not be the beginning of the emergence of startups, but it is certainly the reason for the spread of this term and its popularity all over the world.
Startups in the world today
The emergence of startups is no longer the preserve of Silicon Valley in the United States. But it became a global phenomenon that spread to most countries of the world and met with great interest, whether at the level of states and governments or the group of investors of all levels. Today’s startup growth centers have reached major global cities such as Tel Aviv, Stockholm, Berlin, London, Beijing, Tokyo, Helsinki, and others.
The importance of the startups and how they support the economy
Startup companies may be small at the beginning of their business. Still, they indeed lead to essential changes in the way of life on the ground, and they also have a significant impact on creating a better economy for every country that has supported the work of these companies since their establishment. The startup is forcing the economy in it to develop by adopting new technology and applying it in several sectors.
Startups – Technological innovations
A startup is always more flexible and more able to innovate new ideas, products, and services through which it reaches the local and global consumer, and it also motivates other startups to make faster decisions to develop their business to achieve success.
Therefore, the startup is always looking for government funding or investor funding so that it can move forward with more technological innovations that contribute to solving daily human problems.
Startups – New markets
The ambitious startup is working to reach new global markets or working to support local needs by bringing more investments into the local economy. The technologies and innovations provided by the startup inspire competitors to introduce new products and services. Therefore the economy is working to develop its infrastructure to keep pace with these rapid developments.
Startups – Job opportunities
As we mentioned, startups are high growth companies and thus create jobs that lead to prosperity in the private sector for businesses. This leads to lower unemployment rates and also to higher GDP per capita, with the access of this startup to global markets.
Startups also attract a large segment of university graduates and experienced professionals who are looking for sustainable and high-income employment opportunities.
Reaching the wealth
When investors tend to bet their money on startups, they will benefit from the success of these companies’ businesses, and they will share the profits with them; also, by supporting startups through investors, whether individuals or governments, new revenues will be created in the local economy.
Startups, through their competition based on creativity and innovation, have become crucial factors in moving the wheel of the economy. And governments are working to encourage programs focused on entrepreneurship by removing bureaucratic obstacles and facilitating communications between startups and between investors and significant capital. Startups have become one of the most driving forces of the economy, and they should be supported to improve innovation to make the world a better place.