Does Boston have too many startups that waste talent?

Posted by admin On November - 3 - 2011

Boston has seen lots of startup companies. Find out if these startups are killing the Boston internet economy.

There is an age old argument that startups kill the online economy as most of them are likely to fail. Currently there are startups in various fields, from local Boston Search Engine Optimization startups to even charity startups. But a recent question on Boston.com has sparked discussions among fellow entrepreneurs and business owners. Does Boston have a surplus amount of startups? And are these startups the reason for the lack of talented work pool in Boston?

It is already known that Boston web development companies are having a hard time recruiting. According to some of the top developing companies, Boston needs more talented developers, coders and engineers. The demands for such skills are high while the supply is poor. One reason cited for this is lots of startups. According to an article on boston.com, most startups in Boston are two person companies. Although these new startups and their entrepreneurs are quite talented the majority of them end-up competing with each other or fail due to lack of funding. Sometimes their ideas, while appearing very bright and promising on the outside, may not be very well received by their targeted market leading failure of their enterprise.

According to the CEO’s of some major and established Boston online marketing and services companies, many talented individuals have the option to either work with them or go and start their own company – and due to the success of people like Facebook’s Mark Zuckerberg, most opt for going with their own startups. However not all of them believe startups are killing the digital economy. Many argue that, in fact, startups are providing better talented workforce. If a startup fails to deliver, the people behind that startup would most likely benefit other startups or established companies due to the experience they’ve gained in the process. Applications that have been developed, for example, do not always have to end up in the dustbin of technology. They may be useful to another company, who might have a better plan about what to do with them, or who could integrate them after a few modifications, to their existing line up of web based products.

According to Randy bratty, CEO of Airvana, a broadband service provider, it’s all about supply and demand. There was a time in the late nineties to early 2000s when there was huge demand for engineers, and so there was supply. However during the 2000s there were also large groups of investors who invested in startups nearly in all fields of tech. The majority of these startups ended up competing with each other and failed, since then there has been a slow supply of engineers.

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