Recall that a startup is a young company that bases its operation on technology and, therefore, has the potential to grow easily and quickly. There are emblematic cases of companies that were once of this type and that have revolutionized industries, such as film (Nextflix), hotel (Airbnb), transport (Uber), telecommunications (WhatsApp and Skype) and the publishing house or of retail (Amazon).
Brazil is the country with the largest number in Latin America, followed by Mexico. Currently on their website they report that in our country there are 3,874 startups. Of course, of these, there will be some that have climbed faster and have a higher market value and others that will probably disappear in a few years.
Successful cases of regional startups
Rappi, which offers quick purchase and delivery of products from various suppliers; Linio, an ecommerce company; Conekta, payment processing platform; and Compare Guru, which helps compare loans, insurance and credit cards for the best decision making. These startups could not scale without the participation of investors, so there are crowdfunding platforms, such as the Mexican Play Business, which supports startups to obtain financing and has achieved this with companies such as Canela, Pagamobil, Briko Robotics and Tumbiko, a jewelry company which has generated around 1,000 jobs.
Fintech motivate the reaction of financial institutions
The startups have rejuvenated the business market by increasing competition and encouraging innovation with business models that respond to emerging needs. These companies do not grow from nothing, they need to have certain conditions that allow them to flourish, with customers and consumers eager for their product or services, with public or private institutions – traditional or digital – that grant them investment and financing and with a pool of employees with special characteristics and skills that work, together with the owners, in the promotion of the business.
From this last point I must say that employment within a startup must be based on flexibility; that is, the owners must be flexible in timetables and place of work, even, I think they should choose to offer a combination of work in the office with teleworking, saving resources and time of the employees in transfers.
On the other hand, professionals who work in a startup must be flexible with their salary requirements, because yes, they may not receive the desired income, but to compensate they could have a percentage of shares; likewise, they must be open to move out of town and, above all, to play different roles within the company.
This flexibility fits with what we know as vertical organizational structure, in which employees can develop and gain experience in various areas of the organization. In a startup the roles and responsibilities of the work team are constantly evolving, according to the challenges that the business has at that moment, compared to a large company in which tasks are assigned, your position is very established and any change , it will take at least one year to happen.
Stories and mCommerce, next engines of Mexican companies
This disruptive way of operating or doing business, as well as the work environment, are very attractive options for young generations, as well as developing decision-making skills, leadership, acceptance of risks, tolerance to frustration and stress management.
But not all kinds of personalities fit into a startup, there will be those who prefer to have more control than they expect from their work, have all the resources at hand, meet more experienced people with clear ideas on the steps to take in any situation and a bigger budget to develop projects.
The startups are within the classification of small and medium enterprises and its importance is clear, since together they represent 52% of the Gross Domestic Product (GDP) and 72% of the country’s employment.
Thus, startups will not stop appearing and growing, the range of options will be increasingly varied, while solving some emerging need of the population. Its expansion depends on multiple factors, a favorable business environment, a financial sector available for investment and a human capital willing to be flexible, experiment, risk and evolve.