Over the weekend, I read an interesting post by Rick Spence about why Canada needs more startups – and how he believes how entrepreneurship and innovation will allow Canada to remain globally competitive.
Rick’s post got me thinking about the thriving start-up ecosystem in which the barriers to entry have nearly disappeared for anyone who wants to do something online. The question that hit me is: Are there are too many startups?
For someone who makes a living by helping startups with marketing, it is probably a strange question to be asking, particularly when we should be celebrating the startup and entrepreneurial renaissance now happening.
But as much as it’s important to enjoy the great party taking place, it is always a good idea to have some healthy perspective to keep things in balance. While the growing number of startups is great for the economy, does it make a strong and vibrant ecosystem when there is so much competition and noise?
Think about how many startups are battling each other offering the same product and service to the same target audiences. Some of these startups have business models, some of them not so much. Some have financing, some are bootstrapping, and some are running on fumes.
As well, I would suggest incubators are playing a growing role in the startup “noise” by supporting startups that may be little more than ideas but little chance of becoming a viable business. Don’t get me wrong, incubators are doing yeoman’s work but they also may be giving some entrepreneurs false hope and, at the same, creating distractions in the marketplace.
Sure, startups are sexy and everyone seems to be doing one, but is there too much of a good thing happening?