New business ownership is a great indicator of how the country is doing, right? Surely the more entrepreneurship going on the better?
Well it’s not just that simple, we need to look at what types of start-ups are happening, how successful they are and what they do once established.
It’s been reported that 90% of start-ups fail and this is due to a whole host of reasons, many businesses haven’t been researched properly, don’t have a market for their product, funding issues or any other thing can kill off a new start-up.
What Types Of Start-Ups Are Happening now?
What are the types of businesses that are starting up in America today and how does this differ from the past? It’s no surprise that online is where business trends are going with companies utilising freelance remote workforces more and more, communication and online marketing etc and even manufacturing and industrial businesses are concentrating more and more on automation and technology based solutions.
The small scale start-up, the spare room or garage success looks like becoming more of a distant memory as even new start-ups are having to come in funded and prepared to compete with the big boys.
High Quality Start-Ups That Are Fuelling The Economy
The number of start-ups are down overall but high growth start-ups are on the increase and a good indication of what the quality of these start-ups are is that the amount of new trademarks are growing each year and this shows that these firms are taking protection of their intellectual property, and therefore growth, more seriously and that is good news for the overall economy and for employment.
Tiny business that only employ the owner or family which account for 75% of start ups are not the answer to growing the economy these days.
What Kind Of Companies Manage To Grow?
From the nations’ point of view growth is really what we want from as many as our start-ups as possible as this fuels jobs, wealth and happiness for citizens. This guide to sustainable growth shows how to not only gain the growth needed but to sustain this to be able to flourish and be the kinds of companies America needs.
Companies that will last need to have a solid direction, this may sound obvious, but it’s shocking how many companies don’t have an adequate business plan or if they do don’t refer back to it to see if they are on track and adjust if not.
The business needs to have a strong brand identity so that customers know it and what it stands for. Most importantly this strategy needs to be long-term and so sustainable growth should be realistic and achievable.
So in many ways business start-ups are changing in that they are focused more and more on technology, automation and the internet. But in many other ways nothing has changed, businesses still overwhelmingly fail and those that succeed are what drives the economy forward.
So long as we have the 10% of success stories driving the economy forward then progress will be ensured long term.