startups

Newest Innovation in the Small Business Scene

Newest Innovation in the Small Business Scene

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The biggest innovation in the small business scene is the creation of the startup. First of all, startups are not the same as small businesses. Small businesses are usually privately owned, exist for profit and usually are not targeted to have much effect on a large scale. Startups on the other hand, are temporary scalable businesses that, though existing for profit, are targeted at searching out major solutions to problems for the sake of disrupting a particular industry.

Why Small Businesses Want to be Startups

Since startups started cropping up all over the world, the business scene has changed. Many people confuse small businesses as startups, and they are not entirely to blame. Small businesses have begun to copy the startup model. The startup style of business is easily recognized for its innovative approaches and flexibility, which has been a proven factor of their success. The necessity for small businesses to improve sales and performance, and the confusion among most on the distinction between startups and small businesses, has led to this copycatting.

The Small Business Goals

The goal of a small business is to gain profit and maximize on sales. Small businesses are targeted towards gaining the maximum amount of customers within the reach of the business. The availability of the internet has dramatically increased the reach of the small business. This is another factor which has led to small businesses copying the startup model. The startup is usually geared and targeted towards a worldwide market, and the twentieth century globalization trend has brought that worldwide market closer than ever, even to the steps of the small business. Small businesses have the capability to target a wide market now.

Small Businesses Evolve Into Startups

Popular knowledge dictates that while startups are not small versions of big companies, small businesses can be. Current trends have blurred that line. Small businesses are more and more evolving into startups. By emulating the model of the startup, the small business scales faster than it normally would, and can become a big company in a shorter time.

Are Startups Still Cropping Up?

Yes they definitely are, and at much faster pace. The present valuations of startups are at an all time high and this is motivation for the entrepreneur with ideas and ambition. Aspiring entrepreneurs are springing up faster as a result of worldwide economic conditions which have ceased to favor the traditional form of business. Starting a startup requires as little as no funding at all, and several VCs and angel investors are lining up to fund startups at a concentration that is unprecedented. The success of the startup –despite being limited to 1 out 9, can also be seen with the proliferation of accelerators and incubators at a level not seen since the dotcom bubble.

The small business world is growing, innovations abound everywhere and the internet has made a market out of every individual on the planet. Small businesses are leveraging on this opportunity to scale faster than ever.

The True Impact of Startups on Cities

The True Impact of Startups on Cities

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Take a problem, add a dose of passion, a pinch of innovation and a dash of gumption and you have a startup. Merriam-Webster defines a startup as “the act or an instance of setting in operation or motion” or “fledging business enterprise.” This level of ingenuity and entrepreneurship has led to some of the most successful startups—Facebook, Microsoft, and Google, just to name a few.

Big cities are logical hubs for startups. With the allure of an easy commute, access to all the business essentials, and opportunities at every corner it is easy to see why startups flock to these meccas. The increase of population also has increased greenhouse gas emissions. In short, more people means more pollution. The solution while it may be simple it is not as easy to accomplish—diminish the carbon footprint all the while continuing to grow and expand: enter smart city.

What is smart city? In simple terms it is a city in which technology and local government come together in effort to diminish the effects of pollution and yet promote technological growth. How is this possible? It is actually quite simple, more startups. The Knight Foundation reports that after eighteen months spent researching startups and the city issues they aim to solve they found “a rapid increase in founders and investors who want to solve city problems and believe startups are poised to solve many of our biggest city challenges.” Smart City Summit aims to bridge the gap between city and startup through collaboration and innovation, starting with their annual summits. These summits open the door between city and startup to share knowledge, and hopefully be the catalyst in a lasting relationship.

Not only are startups helping cities become “smarter” by reducing their carbon footprint, but more importantly, they are promoting growth through employment opportunities. Startups provide jobs that would simply not exist without our country’s brave innovators. Some startups are so unique that people will relocate just to be part of something new and exciting. Many want in at the ground floor and being in at the ground floor has historically paid off in a big way. A great example of this is Apple, Inc. Yourstory reports that in 1980 when Apple, Inc. went public, 300 millionaires were created almost instantaneously.