Startups: Essence, Classification, Role in the Economies of the World

Abstract

The article defines that startups in the modern economy, being the first stage of the life cycle of innovations, become one of the main engines of scientific progress. The purpose of the study is to determine the essence, classification, and role of startups in the economies of the world. Within the framework of this goal, the main approaches to defining the essence of startups are considered; a content analysis of the concept of «startup» is carried out; a closer definition of the concept is proposed. The main characteristics of «startups» and «small businesses» are also compared; the key features that allow a business project to be considered a startup are identified; the types and kinds of startups are studied. It concerns the following: low-tech, high-tech, and deep-tech innovations; startups by type of activity; depending on the stage of their life cycle; according to the main trends within which the startup will develop; by the method of occurrence (i. e., the nature of the action in the market); depending on their cost, etc. A generalized classification of types of startups by various attributes is proposed. Trends in the development of the startup movement are studied, viz.: rating by the share of startups in key topics; number of startups in the leading countries; the world-wide distribution of startups based on the industry of their implementation and their respective percentage of the total number. It is proved that the present-days processes of creating startups in the world are developing dynamically and will be of particular importance in those areas of the economy where structural transformation is central to the realization of not only economic but also broader social goals. It is determined that Ukraine cannot stay aside from these processes, which will require the use of various national policy instruments, the formation and development of the startup ecosystem, and the relevant institutional environment. This will create a basis for economic growth, which is extremely important for Ukraine in the context of the post-war economic recovery.

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