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Dishwasher Assignment Finance

Essay by   •  April 17, 2016  •  Coursework  •  384 Words (2 Pages)  •  822 Views

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The article talks about the rise of startups and the way they are changing how business is done and what it means to be a company. They are referred to as disrupters or insurgent companies. It illustrates this fact further with examples of Uber, Airbnb and cloud computing companies who are now threats to cabbies, hoteliers and hardware makers.

It also points out the unique characteristic of these insurgent companies, which is the fusion of ownership with responsibility. This is in contrast with the public company in which owners do not have direct control of the company.

Moreover, the insurgents’ model is becoming more appealing unlike the public company model, which is becoming less appealing after many years of dominance and implementation. There are several reasons for this dissatisfaction with the public company, in spite of its good qualities.

Firstly, the managers of these public companies usually put their own interests first by using several means available to them to boost their incomes. Secondly, the link between the companies and people is weak. Thirdly, it is now very difficult to be publically listed due to too many regulations. All these reasons impose costs on the public company model and make it less attractive.

As a result, the most attractive alternative to the public companies is the startups. They offer a clearly defined ownership and they utilize new technology to become global companies without being big.

However, there are some doubts about the startup revolution and whether it would last. The first is that it is just happening in Silicon Valley. This is not true because the insurgents’ model is now found in all kinds of businesses. The second is that public companies would always buy up the startups, but this is not necessarily true because many of them choose to remain private and find other sources of funding. The third doubt is the ownership in startups is cut off from the rest of the economy. This might be a bit true, but there now several platforms through ordinary people can invest and have a stake in these startups.

In conclusion, both the startups and public companies have their roles to play. Public companies are important in capital-intensive industries. But startups, even ones that may not survive, have added a new alternative to our capitalist way of creating and running businesses.

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