Just 20 to 30 years ago you would have been considered either very brave, or very foolish to start your own business.
The economic world was a different place, the internet was barely a thing and certainly not the global phenomena it is today. In the modern, digital world it is much easier to find and reach a customer base making the startup a more attractive prospect for many.
It’s still a lot of work! The most successful startups accept that they need professional help to create the company and maintain the books. Getting help allows a good entrepreneur to focus on growing and building the business.
The job market has fluctuated dramatically in the last 10 years since the economic crash. It is rare now to get a job for life. The uncertainty of any employment contract has led to many people cutting back on spending and re-evaluating what is important to them.
When the issue is an inability to plan for the future because of job uncertainty; it is hardly surprising that many people are starting their own businesses. Even if their business never becomes a global success story, they will have much more control over the funds they generate and the stability of their future.
This is compounded by the fact that the number of jobs is falling. Automated processes, robotic machines and even A.I. are all playing their part in reducing the need for lower grade workers.
The knock -on effect this has on the economy is simple; less employed people means less disposable money. If people can’t afford to shop for ‘luxury’ items, then other businesses will start to suffer. In short the economy falters
The fact is that people are able to startup their own business with very little financial outlay and compete on a global scale. This is providing people with the security of an income while increasing the amount of cash flowing in and out of the economy.
Business startups are actually the life blood of the economy. Currently 95% of US companies are startups. More importantly these small businesses gradually expand and actually offer employment opportunities to those who need work.
Did you know that 50% of employment in the US is actually classified as due to startups?
This isn’t just a short term economic boost while the economy recovers from a difficult 10 years. Startups are here to stay.
The global rate of people who want to be entrepreneurs is now 53%. This number is steadily growing. The reality is that a new business needs to be up and running extremely quickly. If they are not, they will lose any competitive advantage. To ensure this is the case the startup needs to use the skills of other professionals; as mentioned earlier.
This is how the startup is really transforming the economy. Its need for advice and expertise is driving professionals to create their own startups; providing a service to other startups!
In essence a miniature economy is being created; although it is set to be worth more than the massive corporate firms already dominating the marketplace.
Is it time you considered starting your own business?