Could Modern Start-Up Company Mentality Be An Issue? An International Perspective

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If anyone is following me on my Twitter handle @ThatArchivist, might have seen me currently rant on the current way new companies are being handled in general. I currently reside in the small country of Austria, which is a beautiful country, but is probably the center of an issue I have with the current way the economy is being handled in general. Austria has a population of around 8.474 million according to 2013 report by The World Bank.[1] So, while we aren’t the smartest country in the world, we certainly aren’t going to compete with the United States or Germany in any true way. Yet, something I have subjectively gotten the feeling was that the country is absolutely obsessed with supporting and founding new companies. In its core, this isn’t a bad thing, as new companies keep the economy afloat and also allows us, the consumers, to access new products or services. Yet, where is my gripe?

On some level it probably is the way newer companies are handled in this country currently in the new age. The “start from the bottom and work your way up” mentality has changed so drastically that it almost feels more like “Start with everything until you have nothing left”. At first I was trying to figure out where that came from, except for a personal experience with a guy who had a literal entourage surrounding him after founding three companies from which two failed, but then I realized maybe this is due to the easy access to financials. It is difficult to get a loan at a bank, simply because there are a lot of procedures, you need to have credibility and more, something I have learned from experience working at one. Yet, now in the digital age you technically can bypass them. You can either somehow manage to make a entrepreneur see your business idea and win him as a business angel, or just go the complete Crowdfunding route by outsourcing financials through strangers.

I have already given my personal opinion on Crowdfunding in general and I kind of believe that digital Networking is still in its infancy. If you are interested in why I believe so, well maybe that is worth its own article in the future. Still, we are currently talking about founding new companies and how just maybe Austria could be a great representation of its dark sides.

Most people in the United States probably have heard of the show Shark Tank, which is quite a success for the ABC Network, and maybe ironically one of my personal favorite currently running shows. Why? Well, because it is an interesting look into how the business world meets TV production. Furthermore, the main business angels running the show are proven entrepreneurs and also just great public figures, working hard in and outside of the show. If you ever have the chance follow any of them on Twitter, as they do show a lot of support for the various starting companies they themselves fund. So, you might be wondering where is my problem here?

Austria has its own incarnation of the show titled “02 Minutes, 02 Million”, which first of all it never truly sticks to and is more just a branding name, rather than just how effective “Shark Tank”, “Dragon’s Den” or even Germany’s “Lion’s Cavern”, but it could be just them trying to market it as something else, as we are not in Germany. So, naturally the focus is on Austrian entrepreneurs, who have proven themselves in the field as well, but there seems to be a strange focus with this version. Austria, as I stated before, is a small country, so for some reason instead of focusing on the products themselves, it either is about where or who this person is and if his product is from Austria or not. Partly, I can understand it as the main focus is to further cement Austrian products, but the problem is it feels like it is mainly for Austria. I just have a hard time seeing small starting companies in this country being able to sell their products outside of its own country or at least Germany. It almost seems like a way to force a US entrepreneur mentality on a small country. The United States is strongly diverse from one coast to another, while Austria is pretty much the same just with various different accents and maybe slight alterations in traditions.

Then you have the next issue, companies or young entrepreneurs want to go global. Globalization has become the greatest buzz word of all time, which seems to make entrepreneurs assume that the only way to get your product out is trying to create a digital one. There are millions of Apps on iOS or Android out there fighting to become the new viral hit of the day, so then you have the issue that most commonly the stores will prefer popular products or ones that are near you, so the “global web” will only show Austrian Apps or software within Austria and its neighboring countries until it gets at least some attention. Do you see my problem here? Digital content is just as limited as regular products, because of limitations set by the industry, but for some reason we hail this as the future of any business. Why though? It is actually quite simple, as it is disturbing, everyone compares themselves to the United States and believes that they are all working on the same level.

As you see, this isn’t something that necessarily is only in Austria, but something I can easily use as an example due to me living here most of my life. We all yearn to be like the bigger man, the more successful one and ironically I have come to realize that I myself have fallen victim to it. Seeing someone from my former study program starting his own company and what seems to be at least a fleeting success, annoys me not only because of how I feel it is a representation of modern mentality towards companies, but a slight jealousy that you are stuck in place. I am Austria, I am a small country slowly trying to build up what it can with whatever resources I have available, and they aren’t many. So, I try to further cement myself through various actions or smaller actions to maybe make a slight dent in the reality I am trapped in.

This article is not supposed to be a negative look at business, Austria or the United States. I am quite fond of all three of these elements of the world, I was born in the States, I grew up in Austria and I spend many years of my life studying business. While I have my own goals set in a much different direction than probably most, I do care a lot about the economy and I do worry how some actions just seem more damaging than good. Austria will never be the United States and that is certainly a good thing. Both countries have a lot of history on their own, may it be culturally and business-wise, but I fear this strong “wishful thinking” of being like the bigger brother, might damage any industry in the world. We are digging a foundation, but not realizing we are digging our own graves.

These are once again some random thoughts on how business and smaller companies are handled in Austria and even the world, but before I keep rambling, I really want to know your thoughts on the matter! Leave a comment below and fight me on my own believes and maybe you can prove me wrong!

[1] Cf. The World Bank (2015): http://data.worldbank.org/indicator/SP.POP.TOTL, Dated: 31.08.2015.