Economic needs of a startup

The economy of any country or society is a huge determinant of the wealth or otherwise. For this reason, politicians and people in government will always talk of improving or bettering the economic condition of the country. It is so crucial that elections, opinions and public support are won and lost on this topic.

However, one critical aspect that is often overlooked by many is the importance of small businesses to the economy of a country. They are actually the lifeblood of any economy, and where there is a dearth of these small businesses, it usually is a way of knowing that all is not well with the economy.

Some of these small businesses usually end up becoming big businesses in the long run, but starting them is quite an ordeal. When these businesses or companies are still in their formative years, they are known as startups.

Understanding startups

As earlier stated, these are companies or businesses that are still in their formative years. At this point, their ideas, vision and business model are still in their testing stage, as they are still trying to find out what would be the best business model for their business.

For anyone that knows anything about running a business, this is the most critical point of the company’s life. To drive the point home, statistics show that most startups fail within the first or second year of commencing business. The reasons this is the case are varied; however, the prevalent challenge that they face is usually economic.

One thing the statistics point out to us is that startups need all the help that they can get, especially economic help. But how can they be helped, if their economic needs are unknown? Below are some of the economic needs of a startup…

Funds

It takes money to start and run a business. Without the requisite funds, starting a business is impossible! This is because almost all the necessary things needed to start the business or company will require funds. For example, to start a business, you need a lawyer’s advice and guidance to know the best way and form to start and run the company. Also, it is the lawyer who will register the business for you. Note that all these services will not come for free. Again, it is important to note that this is the least of the expenses that you will have to make when embarking on this entrepreneurial route.

Conducive environment

Forming a startup is already a hard task in itself for the individual, who wants to toe that line, as success in it is not guaranteed. However, having to start or run a business in an environment that is not conducive makes the whole thing much harder. Examples of an unconducive environment include; running a startup in an area that is battling with insecurity, or running a business in a state or country with unfriendly business laws or an environment where the government is dictatorial. The challenge here is that there is no certainty and you might lose everything through no fault of yours. 

Government’s support

Following the last point is the need for startups to have the support of government. It has to be noted that creating a conducive environment for business growth is the duty of the government. However, beyond creating such an environment, the government can go further to set up programmes to directly provide support for startups. It is important that the government does this because the success of startups ultimately affects the economy of a country positively.

Conclusion

Entrepreneurs are basically risk-takers, who embark on ventures that may either yield profits or lead to losses. Their success ultimately reflects positively on the economy of a country, as it will often lead to job creation and employment for the teeming populace.

With it being that their success positively affects the society, it stands to reason that they should, as much as possible, be given all the necessary support needed to succeed in their quest. This help could come from either the government or venture capitalists.

Creative space has set up systems that will help to advocate for funds for startups. These they achieve through running programmes that will teach startups to pitch their business ideas to investors and properly manage funds to bring about the expected results.

To support any of these programmes through partnerships and donations, email info@creativespace.ng.