Startups are known for a lot of innovation and a dynamic work environment. Find out the startup growth challenges, facts, and future predictions in this article!
Startups have become a business trend since internet access has become easier for many people to use. Even now, its development is quite rapid and is expected to continue to grow for the next few years.
Success stories such as Google, Facebook, Uber, Gojek have also become one of the attractions for entrepreneurs to try to build their own startup. However, not many of them know that behind the rapid growth of this business, many startups cannot survive for a long time.
1. What is Startup?
A startup is a company built by 1 or 2 founders that aim to provide a solution to an issue. Therefore, it is not surprising that around 69% of startups are built from home businesses.
Its development throughout the world is also quite rapid and is spread in several fields. There are at least 3 areas that dominate the world, namely, Fintech (7.1%), Health Care and Science (6.8%), and the third AI (5%).
By country, the United States has the highest number of startups (63.703), almost 50% of Unicorns are here. Then this number was followed by India, the UK, Canada, and Indonesia.
Even though it sounds promising, according to a survey about 20% of companies cannot survive within 1 year.
2. The Challenges of Startups
There are several aspects of why startups fail when they are just starting out and when trying to survive.
When Starting Startup
There are at least three things that make companies fail when they are just starting out, including:
- Competition
- Cash Flow
- Tax
These three things become very risky for founders who are just starting their business.
When Trying to Survive
Several other businesses can fail with almost the same factors. But the biggest one is because they don’t understand market needs or can’t adapt to changes. This factor is then followed by high competition and the flow of funds.
3. Future Predictions for Startups Growth
After knowing the challenges above, some trend predictions for the next few years will be able to help the business be built to get the right target market. There are at least 2 predictions of trends that will develop in the future.
1. Artificial Intelligence (AI)
AI has been predicted to be one of the profitable business fields. Even 60% of entrepreneurs agree with this. This field has actually developed from now on, such as driverless transportation and so on. But at least for the next 1 year, AI will be the most sought-after technology.
2. Green Technology
As knowledge about global warming and waste develops, it is predicted that Green Technology will become one of the areas needed in the future. According to the prediction, the market profit will reach $28.9 Mio in 2024.
The startup industry will continue to grow, especially when more and more people can get access to better technology which will lead to fewer challenges and growth for the startup. With proper planning and a solid team, it is not impossible that this business will last more than 10 years.
Checkout Our Other Article: Guide to Becoming a Developer, Career Paths and Prospects in 2022