STARTUP PROLIFERATION

РАСПРОСТРАНЕНИЕ СТАРТАПА

Щириин Тожиева Улугбек кизи

студент, кафедра «Бизнес Менеджмент», Технический институт ЁДЖУ,

Республика Узбекистан, г. Ташкент

ABSTRACT

In article are the basic concepts and definitions related to startups are reflected. The main differences between components of startups and traditional small business are clarified. Three startup markets are explained. The differences between startup-incubators and startup accelerators are stated.

АННОТАЦИЯ

В статье отражены основные понятия и определения, касающихся стартапов. Разъяснены отличительные составляющие стартапов от традиционного малого бизнеса. Описаны 3 вида стартап рынка и разница между стартап-инкубатором и стартап- акселератором.

Keywords: startup, small business, startup market types, startup-incubator, startup-accelerator.

Ключевые слова: стартап, малый бизнес, виды рынков стартапа, стартап-инкубатор, стартап-акселератор.

Launching a business has become a trending activity these days. 10% of people at the age from 18 to 35 have willingness to establish own business, rather than working on someone. Because of this tendency, the word “startup” is being spread widely and used frequently over the past few years. Almost a decade has been spent to find proper definition for this term. According to Marriam-Webster dictionary, startup is “the act or an instance of setting in operation or motion” or “a fledgling business enterprise” Steve Blank suggests “organization formed to search for a repeatable and scalable business model” definition.

Despite of startup’s popularity increasement, it is being confused often with starting a small business, yet they have huge difference. Firstly, in most cases, a small business is not looking for a unique solution, but follows a ready-made model for opening similar enterprises (for example, a coffee shop, restaurant, clothing store).  While the core of startup is innovation and original solutions to problems that have commercial growth prospects. Secondly, since the priority of a small business is to generate more profit, it can grow slowly. On the contrary, startup must reach the development stage as quickly as it possible, as this is its essence. Lastly, small business develops within borders, serving a certain circle of clients. While a startup aims to gain as much market share as possible until it becomes an industry leader.

One of the significant components of startup development is identifying suitable market type, as it effects on cost of entry, the way of launching product/service, as well as following sales model and predicted time of getting the profit. There are four types of markets for startups. They are:

• -existing market
• -resegmented market
• -new market
• -clone market

Existing market- is when product enters to well defined market with gained customers and known competitors.

Resegmented market- is segmented market by focusing on particular niche or by offering better solution than other existing alternatives.

New market- is the market, where there are no competitors, however it is risky one, because of difficulty of figuring out potential customers and future demand considerations.

Clone market- is the market, where a ready business model has been transported to another geographical location, because of facing with possible barriers.

To provide support for startups’ development, there are 3 main organization forms. They are:

• business incubators
• business accelerators

Incubators and accelerators are useful for startups at different stages of development, but many confuse their purpose.

Incubators- are mostly spaces where entrepreneurs get a job, mentoring support, access to private events for a monthly fee, thanks to which they learn to build and develop a business from scratch. Startups usually go to incubators at the idea stage, when the founders are just starting to discuss the future business model, look for a team and study the market.

 Accelerators- are programs during which startups receive mentoring and access to a network of partners. Such programs, as a rule, last from 3 to 6 months, at the end of which a demo-day is held, within which the participants present the project to investors. More developed startups go to accelerators - usually at the prototype or MVP stage, or subject to the presence of first users. These kinds of opportunities make easier to get off the ground hundreds of new startups every day. Last year statistics indictors show that in 2019 number of founded startup organizations reached 5,118. A third of small businesses get started with less than $5,000 and 58 percent got started with less than $25,000. When it comes to gender statistics:

• 73 percent identify as male
• 25 percent identify as female.

To summarize, launching startup is accessible way of establishing own business. More over statistics’ indicators highlight that its popularity is going to increase and number of startup organizations is to grow.

References:

1. Amirova D.R., Advantages of using Internet marketing tools for modern companies // Economics and Business: Theory and Practice. – 2018. – № 2. – С. 14–17.
2. Small Business Trends LLC, https://smallbiztrends.com/2019/03/startup-statistics-small-business.html,
3. Thiel P. and Masters B., Zero to One: Notes on Startups, 2014