1. developed economy like United States, Startup
1. Introduction (167 words)In recent years, it isnot difficult to come across the term “Startup” in every means of media.Actually, this term is not brand new in view of the fact that it appeared from a long time in the past. Nowadays, in a developedeconomy like United States, Startup is an intergral part of it due to theincrease of high technologies.
The term becameinternationally worldwide during the dot-com bubble in the late 1990s,when a large number of Internet-based companies were established. The statistisc of Small BusinessAdministration estimates that there are more than 28 million small businesses in the United States, makingup a whopping 99.7 percent of all U.S.businesses and young firms create most of the jobs.
In addition, Shark Tran Anh Vuongfrom Shark Tank Vietnam stated, “If there is no startup, there will be nosuccessful startup” (2017). Therefore, this paper, with the aim to providebackground infomation of Startup, will discuss the advantages and disadvantagesof Startup in US. 2.
Discussion of findings2.1. Definition of Startup (282 words)A startup company (start-up or startup) is a term which is used to give definitionto new companies making use of hightechnologies to develop products, in the beginning stage of its operations.These startups are usually small, originally supplied with capital and run by agroup of founders or just one individual by utilizing sources available andsupport from outside (Kuckertz & Wagner, 2010). The enterpreneurship isfocused in many nations and is considered a way to boost economic growth andjob creations (M. Lee, 2006). “Entrepreneurial activity is a key source ofeconomic growth, promoting youth entrepreneurship has become a priority forpolicymakers” (Sobel & King, 2008).
Their increase is based on the development of innovative products, servicesor platforms. Also, their products may not be currently being offered anywherein the market or are believed to have been offered in a superior manner in thefuture and are created with the aim to meet the demand of marketplace. This kind of business, however, is not sustainable in the long period oftime due to limited revenue or high costs without an additional funding fromventure capitalists. Likewise, there are no solid rules when a startup stops being considered astartup. Some suggest a startup stops when it reaches a certain size, receiveda huge number of capital investment and becomes a public corporation. Moreover, many startup companies not only have no product to sell but theyalso have no profit.
For example, Facebook did not make a profit until 2009,five years after Mark Zuckerberg founded the company while he was a student atHarvard University and it took Facebook seven years to hit that milestone backin 2011. 2.2.Facts and Figures ofStartup in US (230 words)Every year, thousands of new companies put their hopes on big successfulstories. McClay went on to say that most people would not reach the loftyheights like Google or Facebook, but a few will definitely bloom into industryleaders. With innovative products, effective performance and strong leadership,they are the companies that would help shape the future (October 26, 2017). Itis not for us to see some hugely successful startup companies such as Uber (CEOTravis Kalanick), Airbnb (CEO Brian Chesky) and Palantir (CEO Alex Karp), theyhave the capitaliztion 68 billion dollars, 30 billion dollars and 20,53 billiondollars respectively as reported by Business Insider. Especially, Uber, aride-hailing app, which currently holds the title of the world’s most valuablestartup, reached a $50 billion valuation roughly five years after its founding.
On the other hand, America is a federal republic, there are many people whogo there in order to settle. That is the reason why the rate of businessfounded in US is absolutely high. Data from the National Bureau of EconomicResearch published on August 18, 2016 demonstrates the immigrant percentage ofenterpreneurship is growing over time, from 17 percent in 1995 to 28 percent in2008.
The research also reveals immigrant contribute to US enterpreneurship atan “outsided” rate, 15 percent of its population and approximately quarter ofcountry’s business percent of businessman were immigrants. 2.3.Advantages of Startup inUSLet’s imagine, you have graduated from college in America, with degree inhand, and you have a few jobs offered on the table. Unlike being one of thelucky graduates in a weak economy, you can choose between a well-paid job at areputable brand in your field and being your own boss. By the same token,Astebro indicated in 2012 that starting a career is not only a program forbusiness students but it is also a very important curriculum for students inthe natural sciences, engineering and also in the field of art. That meansformer students from different fields have opportunities to operating a startupassociation as long as they see the potential.
Being confused in this aspect isa common issue of graduates after leaving their studies, as well. Therefore,before making a decidion to become a enterpreneur, people should consider somenegative effects of operating a startup. “Startupsare the new superstar as far business world is concerned because just is thecase with superstar their fans are mad about them and all over them in the sameway in case of startups these days many venture capitalist, institutionalinvestors and influential investors are all over startup and running after new startups sothat they can fund them.” (Vinish Parikh cited onMarch 20, 2016) The first and most important benefit of start abusiness is that is is based on uncommon and particular ideas or creativity.
Parikh pointed out “Inthis world where technology and consumer taste are changing so fast, an uniqueidea can do wonders” (2016)because there is no restriction as far as sale margins are concerned when itcomes to startup. As a result, they have monopoly over the price of productsdue to the fact that there are no substitutes. Furthermore, as stated by Ernst& Young Report, Amerian’s ability to transform ideas into products for salein the field of biotechnology surpassed that of other countries. In agreementwith Jason Wiens and Arnobio Morelix, new enterpreneurs from racial minoritybackgrounds accounted for 23 percent in 1996 and 40 percent in 2015.