STARTUPS

Illuminating Societies and its Economy

by Stanislau Ebo da Silva

Thanks to the digital era we live in now, building start-ups has become the new “big thing” to the world and has shown its true potential when well applied. It is important to remember that start-ups are young companies or newly created ones that present great possibilities for growth and scalability, and ordinarily have a high technological component. Starting a business has now become a trending activity, a report published by CBS News stated that one in five millennials from the age range 18-34 want to quit their monotonous task and establish their empire. How does start-ups influence society and the economy?

Start-ups are characterized by being digital, innovative, agile, and inclined to take and manage risks and they are mostly associated with technology, which allows entrepreneurs to develop new ideas and consolidate them in the market. Start-ups are agents of change; can transform the environment and solving complex problems. They have in their hands the possibility of taking advantage of new technologies, creating value proposals linked to a business idea, and reaching new audiences. Innovation, together with new technologies, such as the internet of things (IoT) or artificial intelligence reinvents sectors and generates disruptive changes.

Start-ups have two basic options: evolve and become small and medium companies or shut down. It will most likely depend on the business model it builds, its target audience, and the product they are selling. Some start-ups become enormous, and they become unicorns, privately held start-ups companies valued at over US 1 billion, that is the case of Uber, Airbnb, or Xiaomi.

Start-ups can expand many businesses, and this logically improves the world economy. Furthermore, one cannot forget that to increase productivity it is necessary to use creativity and innovation since these are the great triggers of success. Studies have shown that most small start-ups can scale their business models within a few years, generating an average of 300-500 new jobs in total.

According to a study by the German start-up Association, each new technology company generates 5.7 jobs, while traditional companies such as freelancers or franchises generate 0.8.

Therefore, start-up largely drive the economy as they promote consumption in societies. The generation of new products or services stimulates consumerism and the purchase of goods, meals, business trips, etc. in technology.

It is plausible to mention seven start-ups in Angola that are doing great and have a huge acceptance within the Angolan society:

• TUPUCA
• Menos Fios
• Bayqi
• Kubinga
• Roque-oline
• Sócia
• Assinabwe

The Global start-up Ecosystems Index aims to provide free quality information for start-up founders to make smart decisions about relocation and the right place to build their start-ups, as well as giving them the visibility and attracting relevant actors into these ecosystems.

Within this global ecosystem, Angola occupies the 115^th position, making it the fourth Portuguese-speaking country to be present in the World Ranking of Start-ups Ecosystems 2021 after Brazil, Portugal and Cape Verde. In addition, the Global start-up Ecosystems Index indicates that Angola also ranks second for start-ups in Central Africa.

The best advertiser that a start-up can have is a satisfied customer, with that said it is assured that a product made by a start-up will most likely influence a society and with start-up growth comes employment and it brings us to the last part, economy shines and people are happy.