START UP: ITALY VS USA
WHAT IS A STARTUP?
Let us begin by defining what a startup is: the etymology of the English word, suggests its definition. Startups are defined as all those companies that operate in the innovative field, in their early stage of activity and startup.
The main characteristics for a company to be called a digital startup are:
1. Scalability
2. Replicability
3. Process or Product Innovation
4. Temporality
Scalability of a startup means the ability to exponentially increase its business without proportionally increasing the resources invested or employed.
Replicability means a business model that can be easily replicated, without major adjustments and modifications, anywhere.
Innovation, of process or product, in bringing an idea and a solution that goes to solve a need not yet explored.
Temporaneity indicates the first phase of the company's life cycle, the startup phase that should later lead the company to become a large reality, some examples of this are: Airbnb, Netflix or Tiktok and many others, which as of today can no longer be considered startups.
According to Steve Blank, considered the guru of Silicon Valley, there are six types of startups:
1. Lifestyle: le quali si fondano sullo sviluppo delle proprie passioni.
2. Family businesses: born to create a profit but have slower growth.
3. Scalable: that have goals of scale like those operating in Silicon Valley, with goals for rapid growth.
4. Aquitainable: the goal is to quickly sell the startup to other market players.
5. Social: whose goal is to make a difference and make the world a better place.
6. Large companies: these are large companies that have been operating on the market for years but need to innovate to keep up with the times.
But what is the difference between Italy vs USA?
The real difference lies in the inherent different approach and mentality between the two countries. Americans are accustomed to a culture of risk and experimentation, they are not afraid of failure, in fact they see the latter as a lesson from which to profit. Italy, on the other hand, bases its economy on small and medium-sized enterprises, which means that there is little experimentation, long production times and little innovation in the digital field. In addition to the cultural factor, decisive is the factor related to state and regional taxation and investment in the field of business and startups, and a very long bureaucracy.
In the US, Steve Blank's general definition is applied, according to which a startup is a scalable and repeatable business model. In Italy, this definition is interchanged with the definition of a small business just starting up, but the two concepts as far as described so far are quite different. An SME, even if in the startup phase is intended to remain so over time, the startup on the other hand has different growth objectives.
The mandatory requirements for opening a startup in Italy:
1. established for less than 5 years
2. annual total value of production less than 5,000 million euros
3. headquartered in Italy or in a European Community country but with an office or branch in Italy
4. not to distribute profits
5. is not formed as a result of a corporate merger or division
6. does not have shares or stock in the capital stock on a regulated market
7. has as its goal the production and dissemination of a product or service with high innovative content
Additional requirements, for which at least one must be met:
1. expenditure on research and development must be 15% or more of the greater of annual sales and costs
2. the workforce must hold a doctoral or master's degree
3. have a patent in the innovative field
With regard to these considerations, if you are thinking of starting your own startup, consider well at what time and in what country is most convenient for you to kick off your venture.