Perspective on Impact on Economy based on mindset of Established Businesses Vs Startups

I am often asked the question about what is my view on the current economic outlook. At a philosophical level, it’s all about the sentiment. As I understand one of the main reasons for economics slowdown  is stagnant  private sector investment driven by negative sentiment and news which leads to a vicious cycle, on the other hand, based on my deep engagement with the startups, the Founders of startup, who also operate within the same environment,  are optimistic and can create a virtuous cycle. Given the small contribution of startups in the economy, we do not feel a big impact.

While there are very few businesses who have been expanding but on the other hand despite the gloom there is really no slowdown in  Start-Ups. 

Here is some top of the mind philosophical issues amongst 
Established businesses vs Startups:

• Ability to take risk is higher in Startups.

• Linear thinking in businesses Vs Exponential thinking of startups.

• Fear Vs Fearless.

• Past successes and business model of organized businesses may hinder their ability to invest while Startups are open to new insights and business models.

• Next-generation family members not keen to participate in existing biz.

• View of the future as Gloomy by businesses vs Optimism of startups.

• Hunger to grow and live for a purpose.

There is a way to explore convergence amongst the two different streams of businesses to create growth & optimism, while Established businesses may provide experience and capital to startups on the other hand Startups can provide hunger, energy, and optimism.

17 August 2019