A new report from researchers at Harvard University, Columbia University, and Duke University suggests that startup ideas don't have to be big or even national to be successful. In fact, most startups are not big, glamorous behemoths like Amazon or Uber. Many of them are small businesses that remain local and have no intention of creating new markets.
The study found that while small businesses such as 3D printing labs and internet cafes are not the epicenter of new technology, they play an important role in ensuring that technology reaches local people, so they are an important part of innovation. claims to be essential.
“Businesses such as auto repair services, video rental stores, and IT consulting are not innovative per se, but they both exist because of underlying technological innovations (automobiles, video cassettes, computers) and their value is This is essential for achieving this goal,” the paper said. To read.
The study, published by Harvard University doctoral student Inessa Colaiacobo, Columbia Business School professor Jorge Guzmán, and Duke University professor Daniel Gross, shows that small startups can actually outperform the Amazons and Ubers of the world. We provide new evidence that it may also be economically advantageous. Simply know your local market well and use it to your advantage.
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“Our typical video rental store entrepreneur or auto mechanic recognizes growing local demand before larger competitors, secures exclusive assets (e.g. prime real estate), and “There is the potential to establish a presence in the market,” the study said.
The study found that “main street” local startups are part of the entrepreneurial ecosystem, as small startups play an important role in diffusing innovation into the economy by selling accessories and providing services. It is said that it occupies an important part of the
For example, a small startup doesn't necessarily need to develop new mobile phones; it can sell phone cases or provide repair services.
While intimate knowledge of your local market can be an advantage, small businesses come with challenges. According to statistics from the U.S. Bureau of Labor, approximately 18% of small businesses go out of business within one year, and half go out of business within five years.
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Researchers used patent data to identify 386 new technologies over the past 100 years and linked those technologies with business registration records in 47 states to better understand how innovation connects small businesses. I understood it well.
