I just came back from the StartupQ8 event and it was great as usual. One of our early readers and early supporters (MyGreenSofa) was asking me about the reason why we are focusing more on Tech startups and neglecting other type of businesses such as restaurants and retailers…etc. It’s a good question, and I tried to answer this issue in a previous post back on July 2012. So allow me to explain this again.
In a Startup you are:
- Building a new product
- Solving a new problem or fulfilling a new need
- Entering a new market with new customers (doesn’t really know if there is a need or not)
- Founders have a vision to scale and become a world class company
- Very risky, yet very rewarding
- Want to change the world to a better place
- Attract bright and smart talents (employ more than 1,000 people in the long-term)
- Revenue more than US$50M
In a Small Business you have:
- Known product/service
- Known Customer with known market
- Low risk
- Want to keep the business small or within the family
- Have low potential to grow
- Founder vision is to make enough money to feed the family
- Attract cheap labor (create 10-100 jobs)
So here in StartupQ8 we believe that in Kuwait we have enough of small businesses and a lack of startups. I’m not saying that small businesses are bad, but I think they are doing good without us. However, we don’t have many startups (companies that can grow globally, create value to customers around the world, create thousands of jobs and create millions of dollars to their shareholders). We need to have more of these companies, and we believe that the kind of help they need is much different than small businesses, and we also believe that these startups will most probably be Tech related startups.
Thanks MyGreenSofa for your question today, and I hope this post made things more clearer on why StartupQ8 is more focused in scalable Tech startups.