Where are the UK start ups?
I’ve been quite chatty today after a few weeks of blog silence, but I really, really wanted to keep a bookmark to this lovely post about why there are no start ups in the UK. The follow up comments suggest that there are indeed start ups in the UK if you know where to look and that creating a successful start up is something that’s hard to do anywhere in the world.
I thought the most interesting thing in the whole thing was a link to Paul Graham’s essay on inequality and risk which basically said that if people weren’t rewarded financially for taking risk noone would want to be in a start up. I thought his arguments were only sound if you accepted the fact that the only reason to work is to make money. I think that goes against what he says in his recent essay about having ideas for start ups where he talks about the value of lower paid jobs where you learn things. I also thought it fundmentally disagreed with what he says about the motivation of really good programmers his famous essay about painters and hackers.
I think you’d have to be mad to go into a start up for the sole purpose of making large amounts of money because I’m sure there are much less risky and stressful ways to do that. I also feel sad for the world if money is the only reason there is for being creative and innovative. I think if you are a creative thinker, a creative job isn’t so much an income as an outlet. I’m sure that’s the reason that there are so many people who do really creative things in their spare time.
October 25th, 2005 at 2:09 am
I just noticed your link to us via the “really creative things” statement and I wanted to say thanks! You’re right, it is insane to enter into a startup looking to make boatloads of money. However, since it also stands to reason that people create startups so they can do what they love, it follows that they’d eventually want to make money from it — enough to pay the bills, though, realistically, we startup types aren’t looking to make as much as we would pushing buttons for someone else. It’s the thrill of self-direction that caused me to get started, along with a lack of interest in toiling for others. How does that translate to the British startup scene?
October 28th, 2005 at 2:40 am
I have to say I disagree with the comment that there are very few start up companies in the UK. Just this year I know of at least 3 different businesses that friends of mine have started up. OK i have a very different background that lends me to end up knowing these sort of people. I did a Masters of Enterprise in Computation at UMIST in Manchester UK… This course sets you up to be able to take an idea from idea to business… so these people have all been on the course and are making a business out of their ideas. It is a great way to get started.
A lot of people are put off of starting their own business because of the risks involved and the lack of financial reward at the end of it. In many cases start up companies fail within the first 3 years. (these are the most critical) If you aren’t making money by then you are usually bankrupt… :S Not good if you are young, worse if you have a family to support. However there are ways of reducing the risks and the best one that i have seen is through courses such as the one I took at Uni. Also business incubator centres like those found in Manchester have a huge part to play in the start up business industry. They provide the support and mentoring that new businesses need.
You really do have to love the business and love your job to do a start up. You live work and breathe it every day. It doesn’t go away when you leave the office… it’s not like your normal 9 – 5 job but it really does have it’s rewards as you see it growing and doing what you always aspired it would do.
“The key to innovation , is a spark of inspiration,
a lot of dedication, and an excellent presentation.”
That’s what got me started on the MEnt! I highly recommend it!