03 Jan

Why Startups Are Good for The Economy?

There is prevalent accord that a depraved economy is a virtuous financial climate for a startup. Indeed, considering the startup flourishing which some are calling the ‘startup economy’, this can well verify true. As this drift continues to raise, though, the startup economy is evolving now having its own market force and initiating a cord of positive effects on the economy at large.

The result of economic slump has been the rise of the dependent personnel. Giants are employing less people so that they can remain flexible with work. This certainly means that getting a job in a big firm is very difficult, ideally for new college and university grads.

For a graduate, having a single degree isn’t enough. Two degrees might be enough to land at a corporate position, along with multitasking, abilities, experience and language competency are just some add-ons for an enhanced seat.

So, what is that startups can give to an economy considering there are more grads and less vacancies?

Providing chances in a non-hiring economy

Amid a blockade in economy where there are no signs of entering for jobs, startups provide an opening into a highly modest and hugely impassable job market, thus employing mind geeks and qualified people in different industries that offer variety of services. Interns are also taken in for their majestic skills instead of doing odd jobs, just to fill in.

Evolving experienced individuals

Individuals who work in startup are aware that they and their colleagues are awesome multitaskers who have developed themselves to fulfill different roles moving beyond their capacities to explore unending talents. Not just this, startups which are formed with a small team give better chance to individuals to know what each of their colleague is doing, how is he doing, knowing just the processes required for any professional work.

If I loosely compare it with a principle of economic studies, team members of a startup are more like the law of diminishing returns. When hungry, we tend to eat a lot, the most. The more we eat, the less our hungry becomes. There comes a time when we don’t want to eat anymore. The same goes with the employees of a company. Few team members must complete all tasks of the company, so their value and skills increase with time. This makes the scope of this type of individual greater than the one working for a specific department of a big company. Individuals coming out of startups are multitasking and more skilled.

A healthier economy, a more diverse market

Small companies, in thousands, hire many freelancers and competent graduates, reducing unemployment tremendously.

Thanks to the technological sector, it has increased competition between startups for providing better products and services allowing for more and experienced individuals to become a part of the hefty world. The increased competition also results in cheaper solutions to problems.