What is a startup?
A startup is a company which is newly emerged in the marketplace, striving to prove its valour in the competition. It is laid out on the foundations of its aims and objectives, designed and developed as a platform to sell its product and services to its target audience.
Starting a business is not an easy task. It comes with a lot of responsibilities and one has to face difficult situations where you are supposed to take risk, but an entrepreneur should be headstrong to eliminate all the barriers and climb the ladder to success.
Types of startups
Do you know that India is home to almost 3100 startups every year?
Startups have a huge impact on the economy. They are centers for generating employment opportunities and using technological enhancements to bring innovations. With more and more startups coming up, competition increases along with growth of our country.
There are mainly 5 types of startups in an ecosystem:
● Large companies: They are startups that come along with their volatile life cycle. They constantly need to adapt to the changes that are taking place in the business world and also and need to be innovative in ideas.
● Scalable Startups: Powerful concepts and those which exchange ideas, make a difference in the world and communicate with their audiences fall under scalable startups
● Small Businesses: They make up a major part of the country’s economy and as they don’t require too much capital, they are very easy to establish.
● Lifestyle startups: They are completely talent based and sheer passion draws business in these companies.
● Buyable: They are started with an only motive of gaining money. They begin with a little capital investment and sell them when its value appreciates.
Understanding the meaning of startup
The word startup means a ‘budding company.’ It means a young company which is developing with time.
With massive growth in technology, prospective businessmen have understood the benefits of launching a startup. They come up with different business ideas to call the shots. Some begin from scratch while some continue to collectively come together to do something massive. These people are destined to be entrepreneurs who passionately follow their dream.
Some start lifestyle startups while some continue to carry their family businesses. Whichever way, one needs to have patience and determination to move forward successfully along with a startup capital.
A business that continuously generates revenue and is able to give valuable services to its audience wins the market. Therefore, be it a large company business or social startup, each one is trying to solve some problems and create a long lasting and far reaching impact.
“Any time is a good time to start a company.” – Ron Conway
Importance of startups
Innovation is the driving force behind the growth of the economy. Introducing new products and services in the market comes with a lot of risk. The commercial innovations are launched in the market by certain formal institutions called as startups. The main objective of a startup is to satisfy the new need in the market.
Startups contribute towards economic development of the society. Startups have the potential of quick growth and it creates a huge scope for employment. In this knowledge based society, startup entrepreneurship brings long term improvement in the economic policy along with a sustainable future investment.
Brings healthy growth of the country
Each startup business plan brings along with it a new mindset. It encourages the new generation to implement their ideas practically and use their creativity to achieve success.
Highly ambitious entrepreneurs come up with different startup ideas and grab business opportunities to achieve success and increase annual growth in income. Economic development is attributed to the dynamics of a startup and it brings proactivity in the society.