Startup businesses or companies play a vital role in the economic prosperity of the world. Indeed, there is a direct correlation between startup businesses or enterprises and a country’s economic growth. Considering the following listed point of fact will make one believe that startup businesses contributed immensely to the world economy at large.
Startup businesses create employment opportunities.
Startup businesses or companies are the major players in the creations of new jobs, and new jobs mean more employment, which generates income to the employees and indirectly contributes to the GDP and entire revenue of the country at large. Specifically, taken recent research in the United States of America as a case study, the positive effects or impact that startup businesses have on job creation is increasing over the years. In just last year, over three million jobs were created through startup businesses. Therefore, startup companies are not just creating employment, but they are contributing to the growth of the economy because most of the job they created remains to have a lasting impact on the economy at large.
Startup businesses enhance the standard of living and economic development.
Since startup businesses attract investors to a particular community in the country, mostly rural areas, the innovations and technology brought to the particular area by these investors will bring about a fast development to the people of the community where they operate and improve their standards of living. As the community developed, this will directly impact the growth of these startup businesses or companies because the money collected as income by those employed will be spent on available goods around them and thereby generate income for another person. This income will still be utilized within the same environment. Money and other monetary advantages will be shared within the community, thereby creating wealth for the people, and as a result, the economy of the entire nation thrives.
Startup businesses make the economy more healthy through competition.
Startup businesses are the main force behind the economic growth of a country. Startup companies initiation into the market with their innovations, technology, and dynamism will bring about competitions between them and the existing large companies already in the market. Research and development for new technologies will begin to fuel innovations because technology creates new opportunities, and no company will want to lag in terms of quality products and services. In turn, this will be counterproductive in bringing about a healthy economic transformation on the national economy.
Startup businesses create an enabling environment to solve local economic problems.
Startup companies focus their day to day operations on the local economic needs and concerns of the people. They set up their services to meet the needs and demand in the market by creating opportunities for people to have access to goods and services they needed to be productive.
Therefore, startup businesses have the ability to change the economy of a nation; it is the only way to create and redistribute wealth between the rich and the poor in the country.