News
16/10/2019
Startups are the future
Google founder and president Eric Schmidt explained several years ago: "The future of Spain comes from knowledge and we need space for innovation." He also announced: "75% of new jobs will come from startups in Spain."
Actually, Eric Schmidt was not wrong. In fact, employment in large companies has been declining for some years now. For every Airbnb or Uber that raises its workforce, there is an X Corporation that was once the industry leader in its time to continue losing the market or struggling to completely change its business model and logistics.
And remember: Airbnb and Uber were small startups in their day and for some reason, perhaps due to the excellence and determination of their creators, they became big, dominant companies.
In general terms, we are not talking about small businesses, but startups: they are disruptive companies, which show great growth power through a scalable business model, and direct their early stages in the product / service market valuation.
But why focus on startups? The fact is that startups with less than 5 years of age, with high growth, create jobs faster than a traditional company, and many of those jobs pay higher than average salaries. A study by the Kauffman Foundation (a center specializing in entrepreneurship) shows how startups in the United States have generated an average of 2.34 million jobs a year since 1977. The number of jobs reached 3 million in 2009 before the crisis.
All other companies, including self-employment or established centuries ago, are devastating jobs, losing, together, a million clean jobs.
Amazing
By comparison, companies with more than 5 years of work created just 450,000 jobs. So it has become clear that startups generate 5 times more jobs than traditional companies, thanks to innovation, automation, and technologies like artificial intelligence and machine learning, for example in e-commerce. It has become clear, therefore, that in order to enjoy well-paid jobs in all ecosystems, every effort must be made to feed them.
This finding could lead to changes in employment standards. Public institutions and politicians tend to reflect the most common media stereotypes about job change in the economy, focusing on a very broad global picture - such as the national rate of unemployment - like the periodic hiring of large companies. This approach leads to a very dangerous direction and attention should not be paid to where it should be. In the end, there is clear and clear evidence that an effective policy to promote job growth must take into account a central recognition of startups.
Today, startups have gained so much importance that in the advanced countries of the world, different events, appointments, fairs and calls are organized. Spain is no less and there are many different actions in different cities across the country, facilitating meetings between startups and investors.
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