The Effect of Startups on the Local Economy
When it comes to startups, it is often thought that it needs to be in a developed country where all the resources are available. The fact is, startups can begin anywhere, and it’s often the countries with the greatest needs that present the biggest opportunities. Startups are at home in environments that offer untapped problems which startups can take advantage of not just to make a profit, but also to make an impact.
One Major Role
It may not be a very popular or well-known fact but startups play a significant role in economic growth even if they were small companies. They create more job opportunities which mean more employment, and more employment means an improved economy. Startups also contribute to the economy with new entrepreneurs consistently bringing innovation into the sector.
By constantly measuring, tracking, and responding to consumer needs as traditional companies have historically struggled with the low speed of implementation of changes, startups generate competitive forces that guarantee a highly successful economy.
In a 2017 report by the Progressive Policy Institute, the private sector job growth in the US is significantly higher where the startup activity is high. On the other side, regions with low startup activity experience less than half the job growth.
All these big companies we know started small, but as they grew, they transformed the cities where they operated. This was the case as Microsoft changed Redmond and Google transformed Mountain View, California. They improved employment patterns by providing job opportunities to both experienced and young professionals from other locations.
Impact At Many Levels
These startups boosted the economy with their revolutionary technology and created new industries over time. And when they went public, they truly became money-making engines for not just the owners but also for all stakeholders. Oftentimes, these same people put their money towards the businesses of friends and business partners, starting a cycle.
So, let us all play our role in nurturing the entrepreneurship ecosystem wherever we live and make our contribution in building towards a prosperous and innovative society.
A Business for Local Impact
The economic impact of startups is clearer today more than ever, but one of the most important types of impact is the social or environmental impact that the startup has. One example is Zap Idea, where we work on upcycling materials through modern and innovative ways to combat climate change as well as unemployment in Lebanon.
Statistics show that 21% of Americans upcycle clothing, boxes, and goods regularly – reducing the need for the production of new goods.
With Zap Idea, you can purchase various types of furniture as well as design them to suit your own personal needs. And with this comes many benefits:
Quality
The environmental benefits of upcycling are immense, aside from minimizing the volume of discarded materials and waste each year, it also reduces the need for production using new or raw materials which means a reduction in air pollution, water pollution, greenhouse gas emissions, and often conservation of global resources.
However, many people still do have reservations about upcycling and the quality of upcycles products. It is important to take note of the craftsmanship and time that goes into each piece which we do not see anymore with pieces coming out of a factory line.
Upcycling also takes an extreme amount of talent and precision giving way to pieces that look made out of raw materials with the expertise of treating the wood and waste material.
Support the local community
Another social and economic benefit of upcycling is that it supports the local economy through the job opportunities it provides. In Zap Idea, we make it a priority to support the local industry with job and internship opportunities ensuring economic impact alongside the environmental one.
A price that suits you
As designers create items from wooden pallets, old furnishings, and other used materials, this drastically reduces their manufacturing costs. This allows us to provide furniture at a low price to suit the needs of our community.
This means that upcycling also allows products to be used to their fullest extent. This means there are many ways to upcycle to create different styles and looks!
Reach out to us via our contact information for more information on how you can get your own piece to contribute to a cleaner environment and a healthier economy.