The new wave of micro-startups has become almost overwhelming in today’s culture, especially with the new social media and tech giants, some of which are not even 15 years old. With all these tech giants and constant startups, many businesses get overlooked, especially the micro-startups, which may consist of only 1 or 2 people.
Micro-startups: Importance and benefits of specialization
However, lately the large tech giants have been acquiring these small businesses, according to The American Genius. At first this may seem strange, why would these huge corporations care about a 1 person business? The answer comes in the form of what these startups can offer large companies. Since they are so small, they are normally very specialized, with valuable tech skills that large corporations need. Due to their size, they understand how they can integrate with much larger companies and assist in development. Recently, Pinterest acquired Kosei and Hike Labs, which both specialize in their content discovery efforts.
Since micro-startups are normally already specialized, they save large corporations a lot of time and effort finding specific people for the tasks. Why waste time interviewing hundreds of people when a small company already does the task you need? Micro-startups also cost less than already more established start-ups, but offer the same quality and caliber as the more established companies. As well as being cost and time effective, they also offer new perspectives on old issues, which can create new solutions in the future.
Micro-startups are quickly becoming the new frontier for large corporations, and now Facebook, Twitter, and even Microsoft have continued with the trend of acquiring these small businesses. In a world of constant evolution and change, instead of a traditional business, micro-startups may become the newest trend in the digital age.