Amongst experts there seems to be widespread consensus that a bad economy is a good (financial) climate for a start-up. Indeed, in light of the on-going start-up boom which some are dubbing the ‘start-up economy’ this may well prove true.
A start-up can be defined as a newly formed company, the purpose of which is to develop new, usually innovative products or services in uncertain circumstances. If it satisfies a new need, locally but preferably in a broader up to a global area, it also has great growth potential. Startup entrepreneurship is crucial because of innovations, new jobs and bringing competitive dynamics into the business environment.
Research by the 2012 Global Entrepreneurship Monitor South Africa concluded that one third of dynamics of a country’s economic growth can be attributed to the dynamics of start-up entrepreneurship. They also contribute to the promotion of the research and innovation system and introduce values of proactivity into the society. Read the full article here.