Start-ups have boomed in the past decade. Talking about start-ups, people only think about Silicon Valley, but the vast growth of start-ups has seen new technology ecosystems sprout across the world. These are located in emerging economies, such as China, India, and Israel. From 2005 to 2017, a Center for American Entrepreneurship study, Rise of the Global Startup City, saw four major trends emerge in the start-up section. These are:
- Great Expansion: The past decade saw a large amount of venture capital deployed. There was an increase of 73 percent of venture capital deals from 2005 to 2017. From 8,500 in 2010 to 14,800 in 2017, that is a considerable increase.
- Urbanization: The US captured 97 percent of all venture capital investments in the mid-1990s. This has since dropped to a little more than half for the US in the latter half of the past decade.
- Globalization: Start-up activity was concentrated in particular areas within the US. These places were areas such as the Silicon Valley, suburbs of Seattle, or the Route 128 Beltway just outside Boston. Just as abroad, even at home, start-ups have been able to move to major centers in the US. The first 10 cities accounted for in the study, including San Francisco, New York, San Jose, Boston, and Los Angeles.
- Winner-Take-All: Increasingly, the start-up landscape is becoming winner-take-all. Venture capitalists are concentrated geographically. Competition for start-ups has therefore increased.
Remote Working is the Future
In addition to the ones mentioned above, trends are emerging that have changed what working means as well. The advent of start-ups has driven home the idea that the remote workforce is here to stay. It reflects the globalization that start-ups have sparked off.
Connectivity has improved. Faster internet speeds mean companies can hire people from any corner of the world without having to spend on office space. People can work from anywhere, and make work flexible around their schedules. More teams are working in collaboration to pool the best available resources and produce excellent results.
People do not keep one job for life. Instead, they like to switch positions from one to the next. Therefore, the workforce prefers great flexibility and wants to work on projects with a social impact. Employees prefer to be hired on a project-by-project basis. As a result, start-ups can hire specialized people for each project, increasing innovation.
Communication is key
Start-ups often have a relaxed working environment. This is done to ensure open communication channels. Without effective communication, it is not possible to work as a team. As a result, meetings should initiate projects, daily emails keep people in the loop, and productivity software such as Slack allows quick chats and updates.
Diversity and Inclusion
Having a smart and innovative workforce needs an inclusive and diverse hiring policy. Consequently, hiring people from different backgrounds brings various perspectives in a room. This is great for creating unique products. Start-ups have to compete for customers globally. Diversity means the company understands different cultures better.