Sree ( 2017) observed that a startup is a fashionable word. The better word is entrepreneurship. Despite which words best suit the practice, it is no doubt that startups are the extra push that keeps the economy growing. Startups allow the economy to expand by providing additional economic activity while providing new opportunities for job seekers. A startup is like an infant. Whichever the business, startups are more likely to crumble during their early years. They are most vulnerable at this stage.
Mansfield (2019) reported that of all small businesses started in 2014 in USA. 80 percent made it to the second year (2015); 70 percent made it to the third year (2016); 62 percent made it to the fourth year (2017); and 56 percent made it to the fifth year (2018). This indicates that a bit more than half of all startups actually survive to their fourth year, while the startup failure rate at four years is about 44 percent.
In the same study, Mansfield (2019) observed that the top 10 causes of small business failure included: no market need: 42 percent; ran out of cash: 29 percent; not the right team: 23 percent; got outcompeted: 19 percent; pricing / cost issues: 18 percent; user un-friendly product: 17 percent; product without a business model: 17 percent; poor marketing: 14 percent; ignore customers: 14 percent; and product mistimed: 13 percent.
Ubrica presents a second chance to all these startups. Ubrica does not only offer funds, but wants to ensure that the chances of startups thriving are high. Ubrica will “facilitate business development and entrepreneurship by bringing researchers together with experienced entrepreneurs and investors to form companies for commercializing university technology,” (Waruingi, 2018). Startups begin, as ideas in an entrepreneurs mind and because of lack of funds, inadequate research and lack of suitable investors, only a fraction of these ideas actually become credible businesses.
Ubrica looks to solve these issues in these following ways: Ubrica will collaborate with universities to provide research facilities and funding for aspiring entrepreneurs. Ubrica will then keep a record of all startups nurtured under the wing of the Ubrica Project in a database accessible to potential investors at will. This will definitely raise the success rate of startups to a desirable level and promote self-employment.
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References, M. (2019). Startup statistics: The numbers you need to know. Retrieved from
Sree V. 2017. Why startups are important for economic growth. https://www.quora.com/Why-startups-are-important-for-economic-growth