Why Startups are Important

Grace Holden

From the outside looking in, startups seem like far distant, unaffecting concepts. However, those of us who work with them know how valuable they truly are, not just in business, but for the world at large. Startups affect everyone and everything, they boost the economy, create opportunities and solve global problems.

Why do we need startups?

Without startups, the world would be a much worse off place. Startups allow people to carve out their own opportunities. This is incredibly important for people from disadvantaged backgrounds for whom job prospects in the traditional marketplace can be much diminished by class and social issues. This is especially true today as anyone with a device and access to the internet can start their own business. Startups can drive people out of poverty when there are few other ways to do so.

Startups are also important for female representation in the workplace. With so many gender inequalities, including pay and lack of promotions, startups give women the opportunity to break the mould and become their own bosses. Female SME founders generate over £50 billion to the UK economy. As founders, women have control over how much they get paid, and they get a seat at the table without having to work twice as hard in traditional workplaces. However, this is not to say female founders don’t experience discrimination from investors and business leaders.

In many organisations, the young and old are adversely discriminated against due to lack of experience or simply because of the way they look. Startups do not discriminate. Anyone of any age can create their own business, from school-age children to older people looking for a new adventure in retirement. This can be a lifeline for many children in deprived areas and give older people the opportunity to develop new skills.

The very nature of startups means they can provide bold solutions to national and international problems, including climate change, prejudice and technological issues. Without them, society wouldn’t progress nearly as quickly! Moreover, every year, startups contribute £196 billion to the UK economy. They provide opportunities for employment and money that feeds directly into the growth of the UK. So, individuals don’t just need startups, nations do. Countries need startups to take risks and create innovative solutions to huge problems.

Why investors should fund startups

Startups are great investment opportunities for venture capitalists, largely because of their potential for investment return. Some of the most successful startups end up with millions, or billions, in their bank accounts. Startups are such great investments that a whole TV show was made around billionaires funding up-and-coming businesses.

Apart from the personal benefits investors get from funding startups, it is also essential that they do so. Without them, startups wouldn’t be able to tackle global issues and innovate in the same way. Investors don’t just provide money, but advice, support and resources startups need to thrive. Startups are essential to the economy and the world, but without investors, they arguably couldn’t do half the work.