David Friedland
You may be wondering which industry is best for startups. Some of the most sought-after sectors are Technology, Media and Entertainment, Retail, Education, Healthcare, and Biotechnology. The Startup Genome project analyzed data about more than 200 startup projects to determine what industries have the highest success rates in terms of creating valuable companies with sustainable business models.
There are some industries which are better for start-ups than others. The top industries are technology, media and entertainment, retail, education, healthcare and biotechnology according to the Startup Genome project which analyzed data about more than 200 startup projects to determine what industries have the highest success rates in terms of creating valuable companies with sustainable business models.
Here are some finding from the research:
Which Industry Is Best For A Startup?
According to venture capitalist Fred Wilson, the best industries for starting a business are Software/Internet, Social Media & Networking, Healthcare, Education, and Mobile. Many of today’s most popular businesses are technology companies. Here are just some examples: SurveyMonkey, Dropbox, Box (software-as-a-service), Chegg (education), Groupon (social media & networking), Etsy – an online marketplace for unique and handmade items, Red Bull (their customer base is extremely loyal), Yelp!, IMDB, Wikipedia, PayPal, Google (web services), LinkedIn, Facebook, Twitter, etc.
If you’re thinking about starting your own business, the most important thing is to make sure you’re passionate about it. If not, then it’s probably best to choose a different industry because this will prevent you from quitting when times get tough.
According to reports from sbecouncil.org, there were about 26.5 million in 2018 (latest data) – then the share of U.S. businesses with fewer than 20 employees. According to BLS data, it is shown that approximately 20% of new businesses fail during the first two years, then it increases to 45% during the first five years, and peaks at 65% during the first 10 years. Some people work for themselves out of choice while others do it because they have to or else they’ll go bankrupt.
In order to achieve success as an entrepreneur, you need the passion and dedication necessary to see your company through both good times and bad. As a matter of fact, most startups fail even though their founders are passionate about what they’re doing. It simply doesn’t work out even if the idea is great.
Industries With High Success Rates
Some industries like healthcare, delivery, gambling, and software as a service (SaaS) have a high success rate when it comes to startup corporations.
Healthcare
For instance, the healthcare industry is in desperate need of new technologies and innovations in order to improve the quality of care. The industry is rich with opportunities for both entrepreneurs and investors alike. Health will always be a relevant industry that’s here to stay. And the need for medical innovations will only increase over time. Any breakthrough which can ease or help solve common medical problems, especially in healthcare, may be very well received by the industry.
Successful startup companies like Neurotrack, WellDoc, and AliveCor are producing products that are changing how we take care of our health.
Delivery Service
Delivery is another great sector because services like UberEATS are taking off like wildfire (UberEATS was launched in 2014 and is already valued at up to $2.65 billion). Plus, the food industry is constantly growing. There are countless restaurants already established around the world with almost new additions every day (both sit-down and fast-food restaurants included). So if you’re thinking about starting your own business, this might be a good opportunity to capitalize on.
Gambling
The gambling industry, especially online casinos, is thriving during this pandemic just like other forms of online entertainment. With the industry value expected to reach $92 billion by 2023, there’s a lot of growth and opportunity in the area.
With the amount of money circling in this industry, it only makes sense there will be high and constant demands for innovations. This is where start-ups could jump and join the pool. Online casinos rely on gaming software that provides hundreds of games for the users to play. One successful company in this field, Pragmatic play, supplies its software to hundreds of online casinos. Millions of people play pragmatic games every day which contributes to a high value to their services.
SaaS
The software as a service (SaaS) industry also has high expectations for future growth. Some of the biggest companies today started out as small start-ups, including giants like Salesforce, Shopify, AWS, and Microsoft .
Even the more mature giants are constantly seeking ways to improve their platforms with new features. For this reason, they have to keep track of existing innovations in order to stay on top. Then you have new up-and-coming companies making waves with their breakthroughs which attract more competition which means even higher demands for new services and products.
The need for new software doesn’t only apply to the giants but also to small businesses who have limited budgets, resources, and manpower. The integration of new software makes a huge difference in productivity and cost-efficiency for these businesses, so they have to do their research.
So it only comes naturally they will turn to the internet for help with this issue. In fact, about half of all small businesses use SaaS products today.
That said, the SaaS industry is expected to reach $436.9 billion in 2025 from current reports of $272.49 billion by this year. And that’s quite a significant growth which means more room for play.
Conclusion
There are a variety of industries that are in need of new technologies and innovations to advance the quality of care or solve common problems. The gambling industry is thriving during this pandemic which makes it an excellent opportunity for start-ups that can provide gaming software. Software as a service (SaaS) has high expectations for future growth because more established companies like Salesforce, Shopify, AWS, and Microsoft all have constant demands for new services and products that keep them on top while attracting competition from up-and-coming companies with breakthroughs that make waves within their field. Lastly small businesses who use SaaS products may find themselves looking online for help due to lack of budget resources or manpower. The industries above may be an excellent choice for you to start your own company in. If you do, be ready to face some stiff competition. A lot of companies are hungry for new advancements and will do anything to get their hands on the latest inventions.
But don’t let that scare you. As long as your company has a good product, all the potential customers in these industries would find themselves knocking at your door because of your very apparent advantage.
