Ideas are plenty in numbers but only a few of them succeeds in this highly competitive world. In order to perfectly execute an idea, one must have all the resources and channels accompanied by all the right networks to make it successful.
The concept of a startup is basically working out a solution for any existing problem without being 100% confident regarding its success. Startups mainly introduce innovations in order to solve a critical problem; oftentimes creating a brand new demand that was not present before and simultaneously providing the right service for taking care of that need.
Since people are coming up with a brand new and never before thought ideas, they are also allocating all the right resources for successfully constructing startups. Similarly, startups are also growing massively all over the world, especially in third world countries. In this article we are going to discuss how startups can improve the economy of third world countries, consequently enabling them to compete with the rest of the countries which are already leading the world.
How startups help a falling economy?
In an economy where unemployment has reached the summit, by establishing startups hiring becomes an inevitable task as not a single company has managed to become successful with just the CEO. As a result, those so-called “lifeless” people suddenly become busy as they get employed by these startups in exchange for money. Moreover, giant companies can hire all the right talents by analyzing the credentials of the workers that already worked at a renowned startup.
In addition to that, all employers of startups reside in a local place, utilize resources locally and even sell their products/services locally within the boundaries of their housing. Eventually, this “act local, think global” move is going to bring back resources and money back within the local community and simultaneously improving conditions of various developing countries worldwide.
Say hello to new tastes and ingredients as startups bring in new innovations and brand new products in an economy thus saturating the market. Innovations and variations in any economy are bound to make it favorable for businesses to grow due to abundant opportunities that are manifesting in developing countries.
The transition of the developing nations:
We have selected a handful of developing countries for this article into which startups have played a major role and also responsible for improving their GDP rate.
Technology has drastically improved the prevailing conditions in these selected developing nations including North Korea, Bangladesh, Kenya, Mozambique, and China.
The proliferation of internet in Bangladesh has enabled entrepreneurs to come up with innovations. This so called developing country is expected to become a middle-income country by the year of 2021 with its per capital income already reaching $1314 in its fiscal year ended on 30th June 2015, according to the World Bank.
When it comes down to China, Angel investors of the latest generation are continuously investing their resources (money) into startups. The amount of investment has reached $526 million USD as a total of 766 projects previous year. Current GDP growth rate of the Dragon is 7.35%.
The recent pictures show that internet users in Kenya have risen by 39%, with its connection speed becoming as good as that of South Africa and Malaysia, according to Ookla Net Index. The majority of this nation’s success has depended upon its mobile money system designed by M-Pesa, (a European startup) helping its GDP to reach about 7% last year.
A large number of startups have been developed in Mozambique, thus drastically improving the state of its economy pushing its GDP to reach 7%. Besides having abundant resources of coal and natural gas, there are new startups that provide consultation and adequate training for handling advanced and sophisticated technologies.
Lastly, when it comes down to North Korea, a nation that keeps itself secluded from the rest has a GDP growth rate of 1% last year. This is a clear indication that a nation which does not encourage startups and foreign investments is bound to experience economic turmoil; its GDP growth rate is a clear indicator showing how startups can improve the economy of third world countries.
Also, read more about the IT startups behind the scene that are controlling the internet.