The Silicon Valley business model has a long history of enthusiastic discussion worldwide. Start-ups, entrepreneurs, and innovators long to be a part of it. Governments worldwide want to make their own Silicon Valley, and scholars incessantly aim to figure its new financial tenets.
Entrepreneurship has allowed the Silicon Valley region to take advantage of the opportunity of globalization rather than being a victim of it over decades.
Silicon Valley is a strong supporter of entrepreneurs. Many experts monitor or support in the areas of human resources, development, technology and business strategies.
What is the Silicon Valley model of entrepreneurship?
Silicon Valley’s business model is designed for high-tech companies built on fundamentally practical innovation and technological capability. As outlined in the MIT Technology Review, “Every region and industry dreams of becoming the next technology hub and the birthplace of tomorrow”.
The OECD (Organisation for Economic Co-operation and Development) and the World Bank have focused their policies on solid growth. And more recently, measures to improve economic performance have been deployed globally. Although the concept of entrepreneurship encompasses a wide range of organizations and practices, the Silicon Valley model of entrepreneurship focuses on performance, particularly tech-driven growth and innovation.
Essential aspects of the Silicon Valley Model of Entrepreneurship
Spare entrepreneurs for start-ups trade
There is a deep understanding in Silicon Valley that not all entrepreneurs succeed at different business stages. Thus, the pool of entrepreneurial skills in the Silicon Valley Model ranges from expanding or translating ideas into market values at multiple levels.
Positive financing to entrepreneurs
If a Silicon Valley start-up struggles to start, investors often seek out their mentors. To raise funds, they share contact information and gain specialized business start-ups leads. It is helpful to manage operational problems more effectively.
A strong network of advisors
Silicon Valley is a strong supporter of entrepreneurs. Many experts monitor or support in the areas of human resources, development, technology and business strategies. To take advantage of this, educators work with management agencies to help fast-growing entrepreneurs manage Silicon Valley business’s complex tangle.
Model Competence: Challenges in Entrepreneurship
There are some significant problems because the Silicon Valley model of entrepreneurship is the only bona fide entrepreneurship.
Selective entrepreneurship success
A singular focus of the model constitutes a phenomenon that is an outlier and exception- it reflects only a fraction of people and enterprises, even as it captures the broad public’s headlines and imaginations.
The exclusive and singular view of entrepreneurship may contribute to a warped policy. The focus and priority are solely on policies and instruments to spur high-tech, high-growth innovative companies at the expense of main street entrepreneurship.
Alternatives to Silicon Valley and its Model
Silicon Valley may be a favourite destination for start-ups, but as mentioned, it comes with drawbacks of its own. The rapidly changing world is developing at an unprecedented pace, and there are many emerging economic power centres where visionary entrepreneurs can create unique opportunities for themselves.
Hong Kong is emerging as Asia’s financial technology capital. Hong Kong has 70 of the top 100 banks in the world. With its infrastructure, a suitable business environment due to reduced taxes and regulations, Hong Kong is set to become the world’s economic capital very soon.
Bengaluru is known as India’s Silicon Valley and accounts for more than 30% of its computer and IT exports. The city of Bengaluru houses giant IT companies such as Infosys, Wipro, Mphasis and Mindtree, and an international technology park in Whitefield, making it the most prominent IT centre in the country.
Shenzhen is one of the world’s largest cities and is part of the most famous traditional electronics manufacturing regions in the world. The city has grown from an outsourced manufacturing centre to a thriving centre for tech-hardware companies.