Tech startups — from small software companies to global unicorns — are at the forefront of innovation. Their contributions reshape industries and improve people’s lives. However, launching one is not easy. Many factors have to be taken into account, from finding a promising idea and acquiring sufficient funding to creating innovative products and solutions that resonate with customers. In addition, a startup’s path from humble garages to global success requires perseverance, extraordinary decisions, and vast investments.
The main reason behind the rise of tech-related startups is their ability to create new technologies, solutions, and tools that meet customer needs in a saturated market. They also encourage established businesses to innovate by demonstrating the potential of emerging technologies and by challenging existing business models. Examples of successful tech startups include Google revolutionizing search, Apple introducing home computing, and Facebook connecting people online.
Technology startups are also characterized by a high growth potential, which they achieve through scalability and digitalization of existing products and services. Furthermore, their rapid speed of development enables them to reach significant market shares and achieve profitability at a much faster pace than traditional businesses do.
While they make up a small percentage of the total number of SMEs, tech startups are attracting the attention of policymakers due to their potential for growth and contribution to innovation. In order to support their growth, governments should create a supportive ecosystem for tech startups that addresses their unique challenges. In addition, they should continue supporting SMEs in general for the important role they play in the economy.