In the United States, it is estimated that an average of 476,000 new startup businesses are established each month. This rapid growth of fresh business is responsible for nearly 20% of current job creation, making startups a significant chunk of the economy.
But surviving as a startup entrepreneur can be difficult. Studies show that 60% of startups fail within their first five years. Markets are extremely competitive, and unless a startup can establish for itself an industry niche, it won’t ever be able to generate a sustainable profit, let alone compete in larger markets.
But to what extent can emerging software developments help—or hurt—the up-and-coming 2022 generation of startup companies? This article will take a closer look at the effects custom software development has on new startups, and give you an idea of whether the rush to adopt new technology is worth it.
What is a Startup?
Startups are defined as recently created companies with little to no prior experience facing volatility in technology and business. In simpler terms, any small company exploring new business ventures in a highly volatile market qualifies as a “startup.” This doesn’t mean just any new business falls under the startup umbrella. Rather, a startup company is one that is looking to solve problems with new solutions, facing high risk along the way. Generally, slogans like “move fast and break things” are identifiable with startup workspaces. Startups usually juggle intense time pressure and lack of resources, forcing them to improvise, grow, and adopt looser organizational structures.
Startups and Software Development
Due to the dynamic, ever-changing pace in the startup world, startup companies need to be able to demonstrate that they can quickly develop and produce the solutions that their customers demand. Nowadays, people turn to software technology for solutions, and startups can too.
Startup employees across various industries report preferring software technologies in the workplace that can keep up with product and management changes. New software has the capacity to provide startup businesses with customizable frameworks through which they can rapidly adapt products according to customer needs. Startups can also implement software to stimulate customer feedback through online surveys or interfaces. This type of immediate feedback means that multiple perspectives and solutions filter into decision-making, empowering teams to influence final outcomes.
Nowadays, startup entrepreneurs are some of the first to apply new technologies to their business practices. And in the long run, this competitive wielding of new technology has paid off for many startups. However, the market is still highly competitive. In order to fare well in the face of high uncertainty, the best startup businesses will be the ones that find a balance between new software implementation and old-fashioned perseverance.
Staying up-to-date in the software industry is a full-time job. That’s why many companies and startups turn to business partners like KitelyTech, INC. for assistance. At KitelyTech, INC., we work with companies to develop and implement new software solutions. Call us at (312) 254-8248 to discuss your business’s software needs and find out how we can help.
