Экономические науки/ 4.Инвестиционная деятельность и фондовые рынки

Панасюк М. А. студентка группы МЗД-11д,

К.п.н.,доцент Сикорская Л. О.

Винницкий торгово-экономический институт

Киевского национального торгово-экономического университета

The problem of investing business concepts and a hand of help, which is called “startup”

Three hundred years ago, running your own business seemed an unbelievable lie. Such a privilege was given only to special limited group of people – the ones, who had titles and other ones, who were the members of royal families.

Entrepreneurship of those times was represented by pharmacies, merchants in the streets and middlemen, who were selling luxury cloth, jewelry, textile, furniture for the richest people and so on. Could they imagine that the most common idea of the next generations will be establishing their own business?

Hundreds of years ago our ancestors were thinking about moral, love, values, family and, finally, art. What has changed, will you ask? We have written numerous books about moral, made thousands of films about love and, even, started to proclaim charity…. Really, everything has changed. We write novels, make films with the only thought - to make much more money. And, even, such a noble thing as a charity of used for avoiding paying taxes. Our ancestors weren’t so mercantile!

Creating, making, teaching, counting seems to be the simplest task! But before that, you have to graduate from the university and find a well-paid job that is the most complicated thing to do. The problem of employment made that a real trouble! Thousands and, even, millions of people are surviving because of lack of job.

The solution sounds so: “Create your own business idea and do nothing, just sell your franchises and receive revenues! ”. Business ideas are everywhere around us, you just have to switch on your fantasy. And another paradigm of life appears: “ If you are an inventor, you need and investor, otherwise you are risking to be left with your ideas in the street”. Asking a hand of help to young entrepreneurs and inventors is a primary purpose of so-called “startup companies”.

Everyone who has created a business idea and developed it, can be called a start-up participant. For example, Wikipedia was just a simple and unbelievable idea of Jim Wales and Larry Sanger, famous social network “Vkontakte” was designed by Russian young man Pavel Durov. MySpace, Flickr, Meebo, Youtube, Facebook and other networks also were start-up ideas.

A startup company or startup is a company, a partnership or temporary organization designed to search for a repeatable and scalable business model. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded. Startup companies can come in all forms.

A critical task in setting up a business is to conduct research in order to validate, assess and develop the business concepts in addition to opportunities to establish further and deeper understanding on the ideas or business concepts as well as their commercial potential. A company may cease to be a startup as it passes various milestones, such as becoming publicly traded in an IPO, or ceasing to exist as an independent entity via acquisition.

Investors are generally most attracted to those new companies distinguished by their risk/reward profile and scalability. That is, they have lower bootstrapping costs, higher risk, and higher potential return on investment. Successful startups are typically more scalable than an established business, in the sense that they can potentially grow rapidly with limited investment of capital, labor or land.

Startups encounter several unique options for funding. Venture capital firms and angel investors may help startup companies begin operations, exchanging seed money for an equity stake.

In practice though, many startups are initially funded by the founders themselves. Factoring is another option, though not unique to startups. Some new funding opportunities are also developing in crowd funding.

Startups utilize a casual attitude in some respects to promote efficiency in the workplace, which is needed to get their business off of the ground. In a 1960 study, Douglas McGregor stressed that punishments and rewards for uniformity in the workplace is not necessary, as some people are born with the motivation to work without incentives.

This culture has evolved to include larger companies today aiming at acquiring the bright minds driving startups. Google, amongst other companies, has made strides to make purchased startups and their workers feel right at home in their offices, even letting them bring their dogs to work. The main goal behind all changes to the culture of the startup workplace, or a company hiring workers from a startup to do similar work, is to make the people feel as comfortable as possible so they can have the best performance in the office.

I have discovered one of startup events – StartUp AddVenture Europe Venture Summit. It was held in Kyiv on 4-5 December of 2013. The location wasn’t chosen accidentally, as Kyiv is located at the heart of Eastern Europe. The city of 3+ million, is the gateway to Central Europe and the fast-growing Russian-language Internet — second place only behind English in Europe.

StartUp AddVenture was a real Network with 3000 participants from 28 countries from Eastern and Central Europe. Participants had an opportunity to learn, and get personal advice from the most successful investors of the Silicon Valley during 6 practical workshops: mobile, gaming, design, pitching, growth hacking and e-commerce and rock at the most informal business event in Europe! Everyone had an opportunity to show his business idea to public and find an investor.

Such famous entrepreneurs as Dave Mcclure, Adeo Ressi, Alex Hunter, Matter Rizzi and others were looking for special invents to be invested. The agenda of this event was full of lessons, lections, business panels, discussions, afterparties and, finally, awards to the winners! This event was worth visiting.

So, it is known that ideas need money to become applied and startups are a real help for young and ambitious inventors. Being a startuper is a possibility for young person to get all the chances to become successful.