Maybe the US has more startups on the ultra-successful end but that doesn't say much about the chances of the average person starting an average, unremarkable business.
Maybe the US has more startups on the ultra-successful end but that doesn't say much about the chances of the average person starting an average, unremarkable business.
If you don't start that pizza business, I'll buy my pizza somewhere else.
Startups create new markets through innovation. A Facebook-like is like the pizza business. Facebook (or its ancestors) was the market creator.
Uber has similarities with the pizza business, but it's all about transforming a business (taxi service) into something else. So it's between pizzas and Facebook.
So I guess there are various levels of disruption or creation of the market. But the pizza business is probably at level 0 of disruption/creation.
Think of Starbucks vs. your coffee shop...
There are no pizza restaurant in my town, but plenty of Indian and Chinese take-aways and one each of the big three fast-food chains.
So if a pizza business arrived it could be disruptive to the status quo, particularly if it offered something that the others didn't e.g. delivery beyond two miles or first-class vegetarian options.
Another example of simple disruption is a shop which opened offering walk-in printing. You just pop your memory stick into the machine and hit 'print'. This completely undermined the library which previously had a monopoly on printing and which took > 15 minutes by the time you waited for a librarian to authorize the printing.
Neither are particularly exciting, but both offer a disruptive service.
http://www.washingtonpost.com/news/on-small-business/wp/2015...
I could see a lack of social safety nets, increased costs/risks of safely running a compliant business and corporate consolidation being behind this trend...
The article mentions student debt. I'm part of that cohort, and did start a business. I'm Canadian. If I had had the average US student debt, I never would have got started.
If they didn't do their pizza shop, no one would notice, but if we didn't have high growth startups, I think we'd feel that impact far far more.
This is not to imply that high growth = high impact, because there's of course a ton of rent-seeking bullshit out there to be condemned.
I completely fail to notice most "high-growth" startups. I do like my neighborhood pizza joints and ethnic food stores.
But hey, maybe that's because I share Peter Thiel's taste in startups.