What is a startup?
According to investopedia, a startup is defined as a company in its early stages of operations. Founded by entrepreneurs who want to develop a product or service they believe is in-demand and hopefully underserved.

What does it do?
Basically it’s a new company working to solve a pain problem or do the same thing currently done in the industry, but in a different way to offer more convenience.

Think of the taxi business for example, ride services like Uber and Bolt disrupted that industry by eliminating the inconveniences associated with taxis.

Why are startups important?
Looking at our current unemployment rate among the youth (15-34 years) which sits at 45.5% according to Stats SA, i.

It’s obvious that job creation is deeply needed in South Africa, and that’s where bold and visionary entrepreneurs come in.

We can’t depend on the government to do everything for us. If we want jobs, then some of us have to create them through startup companies.

Our Companies should that focus on solving problems and inconveniences that we face, through innovative solutions. While also finding a stable and scalable business model in the process.

Examples of successful startups you might know internationally include; Microsoft, Apple, Amazon and Meta (Facebook). And locally are you might know YOCO, Luno, Ozow, and Naked insurance to name a few.

How can you get started?
According to investopedia, these are the steps to follow when considering to start your own startup company:
Have a great idea.
Conduct a thorough market research, to identify the viability of your idea.
Create a business plan that outlines your company structure, goals, mission, values and objectives.
Register your business and obtain any licences and permits required by the kind of business you want to do.
Probably the most important step is to obtain funding. Either through your savings, friends, family, investors, crowdfunding or loans.
Establish a business location (is it online or a physical store or an office or a factory?)
Create an advertising strategy to attract new customers.
Establish a customer base and adapt as your business grows.

What are some of the challenges you’ll face?
Access to funding remains a huge hurdle for entrepreneurs to overcome. It’s tough securing sufficient capital for growth and innovation, although it’s possible. Building trust and mainstream adoption are also real challenges too.

It’s a common fact that 90% of startups fail in their first few years of existence. However it’s also true that the other 10% who persist and do it right, can enjoy astronomical success later on.

In short, startups aren’t for everyone. It takes a certain kind of entrepreneur to make it through the long hours of research and development, raising capital, creating a sound business model and plan, hiring key talent, and never losing sight of the vision.

Now tell us, are you that entrepreneur?