By Blake Hutchison, CEO, Flippa
When you think of the world’s most exciting tech hubs like Silicon Valley or Austin, you can’t help but be amazed at how entrepreneurs are bringing innovation to their cities.
From research and development to boost underrepresented communities, to job creation, to technology advancement, startups play a crucial role in strengthening a city’s economy.
Here’s how.
By creating innovation.
Startups are innovative and scalable, expanding with the ever-changing world of technology. That ability to pivot and shift gives them an edge over older companies, whose established, entrenched nature can make it harder to shift with the times.
Young entrepreneurs, who make up 35% of the US workforce, are hungry for success, willing to take risks, and eager to join the startup world and make a difference in their communities.
Agility and creativity allow companies to focus on the changing demands and needs of their customers. Startups encourage thinking outside traditional, outdated confines, creating opportunities for discovery, growth, and new business models.
Startups create jobs at faster rates than older companies.
Without startups, we’d face economic stagnation.
Vivek Wadhwa, an entrepreneur turned academic, put it best in a contributing piece on Techcrunch: “Without startups, there would be no net job growth in the U.S. economy. From 1977 to 2005, existing companies were net job destroyers, losing 1 million net jobs per year. In contract, new businesses in their first year added an average of 3 million jobs annually.”
Additionally, a report by the Progressive Policy Institute found that private sector job growth is significantly higher in economic regions where startup activity is high, compared to areas with less startup formation.
Private investors and VC funds also contribute to the success of a startup’s growth.
It’s only reasonable that policymakers in any given sector of the country take into account startups in their communities and implement policy measures that fuel the growth of startups.
It positively impacts standard of living.
Because startups focus on innovative ideas that resolve issues for its customers, it can positively impact a communities’ standard of living.
Startups locally employ diverse teams, directly influencing education, culture, and policies in a specific region, while creating buzz and bringing awareness to issues that affect a specific community.
Conclusion
Undeniably, startups bring tremendous economic value in our world, bringing innovative ideas, job creation, and political shifts. By paying closer attention and investing in their growth, we can positively impact the world around us.
Blake Hutchison is the CEO of Flippa. the #1 marketplace to buy and sell sites, stores, social media accounts and online businesses. Blake has worked on leadership teams assisting in fast growth businesses including Xero and Luxury Escapes. Among his start up experience he also founded a company…he then used Flippa to sell the business.
