Since the advent of the internet the global economy has been evolving and adapting dramatically to keep up with increasing technological innovation in a shrinking world. A recent article published in The Economist discusses the reasons for the current boom in digital startups and not only its economical but cultural repercussions.
Much like the Cambrian Explosion which led to the vast proliferation of life on Earth, the current explosion in internet startups has created a variety of services and products that penetrate a multitude of markets and user bases. Cheap technologies and ubiquitous online services and resources are the main reasons for this boom in the internet business. These startups also benefit from being able to move overseas with ease and access a larger audience due to the extensive reach of the internet around the world.
The author of the article compares this current boom with that of the dotcom era in that most of the newly released products and services are simply iterations of existing ones. This leads to a high rate of failure much like what many dotcom businesses faced in the late 90’s. However, the author does point out that today’s boom has much more solid foundations with more dependable platforms and better tools. This leads us to believe that this current economic episode will continue for years to come.
This article also delves into the cultural implications of this phenomenon. Since the recession millennials have preferred less conventional jobs and have looked to be more entrepreneurial than the previous generation of young professionals. The growing business of internet startups is very attractive considering the relatively low startup costs to enter the industry. There is also huge potential to make it big due to the abundance of other programs and services offered online and free of charge that can be used to distribute products and market them globally.
Since the article does not argue how to improve and sustain this boom in economic growth I offer my suggestions here. This explosion in digital startups would be even more fruitful if there were fewer regulations on access to internet tools and databases. Why not let loose the reins of this economic dynamo and sustain this boom to see where it takes us and how much good it can do in the spaces of health and government? Especially when one considers the growth in mobile technologies over the years the possibilities for benefit in these industries is limitless. However, in order to ensure real improvements to current systems true visionaries not hype filled get-rich-quick firms are needed. If visionaries are squeezed out of the market by spammers and hollow products consumers will lose interest and abandon the industry. The bubble will burst much like the dotcom bubble of the late 90’s, allowing many rewarding opportunities to drift into afterthought.