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SpanishThe Technology Startup DNA… What to Expect?
What is considered as a Tech Startup?
A tech startup is much more than a business, a tech startup has innovation at its core and leverages that technology to disrupt industries and solve real-world problems or meet a market need.
This takes us nicely into the question: What are pros and cons of being a startup founder?
If you are asking this question it is because you have clarity in relation to your entrepreneurial mindset and you are ready to take action.
Remember that the startup journey is like a roller coaster – thrilling, filled with twists and turns, and definitely not for the faint-hearted. Having said that, the benefits of embarking on the startup journey are huge and rewarding at many levels.
Benefits of Being a Startup Founder
Personal Growth and Learning
Entrepreneurship is a continuous learning curve. According to a study by Babson College, 98% of entrepreneurs consider their business experience valuable for personal development.
Financial Rewards
Statistics reveal that successful entrepreneurs often enjoy significant financial gains. According to a study by the Kauffman Foundation, the average net worth of business owners in the United States is three times higher than that of non-business owners.
With this said, if this is your main reason for embarking on this journey you are more likely to fail.
If you are money first you don’t get anything…
Flexibility and Autonomy
In other words being your own boss which means freedom to set your own schedule and make decisions without bureaucratic red tape.
In most cases it occurs when you are at a senior level in an organisation and you are looking to implement ideas and you are met with resistance or could simply be that you spotted an opportunity that you can’t implement in the company for whatever reason.
A survey by FreshBooks found that 97% of entrepreneurs value the autonomy that comes with running their own business.
Innovation and Creativity
Entrepreneurs are at the forefront of innovation. You may want to innovate in a particular industry or play with a new technology.
A report by Global Entrepreneurship Monitor (GEM) indicates that entrepreneurs contribute substantially to the development of new products and services, fostering a culture of creativity in the business world.
Innovation and Impact
Entrepreneurs have the power to turn ideas into reality, creating products or services that revolutionise industries. The Global Entrepreneurship Monitor (GEM) reported that 77% of entrepreneurs believe their businesses offer innovative products or services.
However, startup life is not a bed of roses nor a bed of thorns, you will find loads of challenges along the way.
Here are some challenges Founders/Entrepreneurs Face
Financial Uncertainty
Most founders are in fundraising mode from day one, while the potential for financial success is high, the journey is long with financial uncertainties.
You are literally begging for money to stay afloat. According to a study by CB Insights, 29% of startups fail because they run out of cash.
Work-Life Imbalance
Entrepreneurs often find it challenging to strike a balance between work and personal life.
Acknowledging that a good routine is key and work life balance for startups is even more fundamental.
A good routine will help you manage your time and be on top of all key engagements.
Work life balance will help avoid burnout.
On one hand you keep your energy levels high and on the other you will be able to absorb information and communicate effectively.
Emotional Roller Coaster
The health of the founder’s support system can help to manage this emotional roller coaster.
Founders support system starts with their family/friends and extends to local groups, national bodies/networks and once you are in the scaling phase the same applies at a global context.
The emotional toll of entrepreneurship is a well-documented challenge. The ups and downs of building a business can lead to stress and anxiety.
A survey by Gallup found that 45% of entrepreneurs experience daily stress, compared to 42% of other workers.
Market Competition
Navigating through a competitive market is a constant challenge. Statista reports that in 2021, the number of new business applications in the United States reached a record high, signaling fierce competition.
Mental Health Struggles
The pressure and uncertainties of entrepreneurship can take a toll on mental health. A study in the Journal of Business Venturing found that entrepreneurs are more likely to experience mental health challenges than non-entrepreneurs.
Adaptability to Change
The business landscape is dynamic, and adaptability is crucial for survival. Only 40% of startups make it to their fifth year, according to data from Statistic Brain Research Institute, highlighting the importance of navigating change effectively.
Market Competition and Saturation
In a globalised marketplace, competition is fierce. The Small Business Administration notes that half of all new establishments survive five years or more, and about one-third survive ten years or more.