The Role of Startups in Economic Growth PDF
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Uploaded by ImmaculateMajesty
Suvkhanova Kamila
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This presentation examines the significance of startups in driving economic growth. It highlights the role of innovation, job creation, and diversification within the business sector. Furthermore, it also discusses various challenges associated with startups, such as funding and regulatory obstacles.
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THE ROLE OF STARTUPS IN ECONOMIC GROWTHSuvkhanova Kamila TODAY'S AGENDA 1 Introduction 6 Access to Funding 2 Defining Startups 7 Regulatory Hurdles 3 Job Creation: 8 Government Support 4 Innovation and Technological 9 The Future of Start...
THE ROLE OF STARTUPS IN ECONOMIC GROWTHSuvkhanova Kamila TODAY'S AGENDA 1 Introduction 6 Access to Funding 2 Defining Startups 7 Regulatory Hurdles 3 Job Creation: 8 Government Support 4 Innovation and Technological 9 The Future of Startups Advancements 5 Economic Diversification 10 Conclusion INTRODUCTION Startups significantly influence economic growth by fostering innovation, creating jobs, and driving industry diversification. Scalability Designed to grow quickly with minimal additional costs Innovation Focus on new ideas, technologies, or business models KEY CHARACTERISTI Risk and Reward CS High potential for success but equally high risks of failure JOB CREATION Direct Employment Indirect Employment Dynamic Employment Opportunities Startups accounted for nearly 3 Startups create ripple effects in million new jobs in the U.S. in supply chains, logistics, and Startups offer diverse roles 2020, based on SBA (Small consulting services. from data scientists to social Business Administration) data. Example: Uber has created media managers, creating Globally, they are critical opportunities for drivers, auto opportunities in cutting-edge employers in IT, e-commerce, financing, and vehicle fields. and manufacturing sectors. maintenance businesses. INNOVATION AND TECHNOLOGICAL ADVANCEMENTS DRIVING FOSTERING INNOVATION BREAKTHROUGHS CULTURE Startups innovate in artificial Startups encourage a problem-solving intelligence (AI), biotech, and green mindset and rapid iteration of ideas. energy. Example: Airbnb transformed the Example: SpaceX disrupted space hospitality industry with its peer-to-peer exploration by making reusable rockets model. viable, reducing costs by over 50%. ECONOMIC DIVERSIFICATION REDUCING RELIANCE ON CREATING NEW TRADITIONAL SECTORS INDUSTRIES Startups spearhead industries like Transitioning economies from agriculture or blockchain, augmented reality (AR), and manufacturing to tech and services. FinTech. Example: In Kenya, M-Pesa (a mobile payment Example: Revolut and PayPal revolutionized startup) reduced reliance on traditional banking digital banking and payments. systems. We help startups get media coverage and build relationships with relevant journalists and influencers. CHALLENGES FACED BY STARTUPS Common Barriers: 90% of startups fail due to cash flow issues, according to CB Insights. Early-stage funding often limited to personal savings or loans. Venture Capital and Angel Investors: In 2023, global venture capital funding reached $445 billion. Example: Companies like Stripe raised billions through venture funding, enabling global scaling. Alternative Financing Models: Crowdfunding platforms (Kickstarter, Indiegogo) provide avenues for community- driven funding. INTELLECTUAL PROPERTY (IP) COMPLEX POLICIES PROTECTION Startups often face delays due to unclear The cost of filing patents often exceeds what regulations on data privacy, labor laws, or startups can afford, leaving innovations taxation. vulnerable. Example: FinTech startups navigating anti-money Example: Startups in the pharmaceutical industry laundering (AML) compliance. struggle with long and expensive approval processes. Regulatory Hurdles ATTRACTING TALENT RETENTION CHALLENGES Large corporations lure skilled professionals Startup employees face burnout from long with higher salaries and job stability. hours and uncertainty. Example: Google and Amazon often hire away Solutions: Offering equity, flexible work policies, talent from startups. and career growth opportunities. Talent Acquisition and Retention GOVERNMENT SUPPORT FOR STARTUPS Tax Incentives Subsidies India’s Startup India initiative provides funding support and other incentives to encourage Example: The U.S. offers the R&D entrepreneurship. Tax Credit, allowing startups to Case Study: Singapore’s government reduce costs associated with provides grants like the Startup SG Founder innovation. scheme, helping founders with early-stage capital. Innovation Hubs Incubators and Accelerators Cities like Berlin, Tel Aviv, and Y Combinator and Techstars Bangalore are global startup hubs provide mentorship, funding, and due to coworking spaces and resources. technology infrastructure. Example: Dropbox and Airbnb benefited from accelerator programs. THE FUTURE OF STARTUPS AI and Machine Learning Expected to generate $190 billion in revenue by 2025. Example: OpenAI’s ChatGPT redefined AI’s applications in customer support, education, and creativity. Sustainability: Startups like Beyond Meat and Tesla lead green tech innovations. HealthTech and Biotech: Advances in telemedicine, genomics, and personalized healthcare. Example: Moderna’s success with its COVID-19 vaccine highlights the critical role of biotech startups. GLOBAL EXPANSION Leveraging e-commerce platforms, digital marketing, and international trade networks. Example: Shopify enables small startups to access global markets. Cross-Border Collaborations Example: Partnerships between U.S. and Indian startups in IT outsourcing and software development. CONCLUSION Recap Call to Action Vision for the Future Startups drive job Governments, Startups hold immense creation, innovation, investors, and potential to tackle and economic communities must global challenges, diversification. continue to support from climate change Despite challenges, startups as engines of to healthcare government policies, progress. accessibility. funding access, and mentorship are key to their growth. THANK YOU for your time and attention