Startups – a source of innovation
Nowadays, probably none of us can imagine the world without innovation. A groundbreaking product or service, searching for new and better ways of applying already existing solutions or technologies have been and will remain the key to success.14 July 2021 | Reading Time: 2 minutes | Share:
Large companies generate many innovations through their R&D departments, cooperation with universities and technology parks. That is related to high financial expenditures, talent acquisition, the building of necessary infrastructure. However, these things do not always guarantee success in the search for a breakthrough idea. In recent years, more and more companies have been looking towards startups as an alternative source of innovation. Young, fast-growing companies with cutting-edge ideas, products or services are contributing more and more to the business every year.
Idea and skill
When thinking of a start-up, many of us imagine a group of young people starting a new project in a garage. However, those days are long gone. Contemporary start-ups involve people with not only a good idea for a business but also with management skills, experience, and a vision for growth. In addition, they have the tools that allow them to get from the market what they lack at their current stage of development, from competence to financing.
As a result, the startup market in Poland is developing very dynamically. That is confirmed by a large number of incubators and accelerators and the presence of foreign business leaders who more and more often place their initiatives in Poland. International commercial success is achieved mainly by ICT startups – regardless of the sector, they operate in. Gaming, which is developing exceptionally well in Poland, is also worth mentioning. Our market offers a good number of investment funds mainly of the Early Stage type, but there is still not enough of them in the subsequent rounds.
Believing in success is key
Apart from capital availability, other specific resources determine the growth of a startup. The team that believes in the idea’s success is the basis, which, supported by creativity and entrepreneurship, guarantees growth. Additionally, the success of startups is dependent on a strong leader, often the founder of the startup, who has a significant influence on its development through, among other things, effective “drive” and the ability to make key decisions quickly. The advantage of startups is not only their agility but also the relatively small consequences of failure. It allows them to take risks ins situations when mature companies will not.
The question arises – why, with all these things, only a tiny percentage of startups succeed. There could be several reasons. These include a lack of understanding of customers’ needs, or not enough charisma, and the inability to convince people of your vision, which are often linked to a lack of sales skills. Lack of sufficient funding and insufficient management skills are also common challenges, which can determine the fate of even the best startups as the business grows. However, networking and stable funding improve the chances of success. Working with a company that is open to innovation can also be an asset.
Originally published in Polish on the Edulab website: https://edulab.io/startupy-zrodlo-innowacji/