The Bureau of Labor Statistics classifies an industry as technology-based if the share of its workforce in STEM fields is twice the national average.
Tech startups are challenging to launch, difficult to sustain and have a high percentage of failure: 70% are gone in 10 years. Yet some do survive and thrive. And they’re important. According to the Information Technology & Innovation Foundation, technology-based startups and older firms account for only 3.8% of the total firms in the U.S., but they generate 27% of U.S. exports and pay more than 8% of the nation’s wages. A startup is referred to as a “unicorn” when it reaches a valuation of $1 billion, and only 1% of them reach that status.
What factors lead to a technology startup’s success? And what leads to failure?
Primary reasons for such a high failure rate are lack of capital, market competition, the wrong team or unsatisfactory customer experience. Often, a startup team tries to extend itself into areas beyond its core competencies, or it expends financial and people resources in areas that take it away from a product- or customer-focused goal.
Many successful startups find suitable partners to outsource those areas instead. Those companies learn that the right vendor can successfully manage accounting, human resources, legal services, information technology services and a help desk, among other services.
At Hexagon IT Services, we understand the importance of startups and their roles as growth engines. We have dedicated teams to assist these organizations in delivering future to the world through their novel ideas and passions. We assist such companies by supporting their efforts for proof of concepts of their software applications, hardware devices or integrated solutions. We can provide end-to-end deployment and support solutions, on-demand scalability for full-scale deployments with our footprint in North America, a designated service desk to provide remote troubleshooting or initiating on-site support requests and depot services.
Our suite of solutions can help technology-based startups reduce costs, achieve resource optimizations, and keep their focus on building world-class solutions that provide great customer experience.
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Learn more about Hexagon IT Services here.
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