Startups in Ukraine: Era of The Viable Business

12 Feb 2018  /  Business  / ,

Startups die all the time – some have insufficient financing or don’t win the audience, meanwhile, the others invade the marked in a flash of light. Why are there so many successful IT companies in here then? What makes Ukraine a right place to launch a startup?

Before we get to the key to startup success, let’s find out, what is the very startup? We hear that word all the time but its definition is not clear, yet. Natalie Robehmed, Forbes business journalist, describes a startup as a young venture, driven by the promise of change and making difference. Even though there are no clear characteristics that differentiate a startup from a conventional company, we can tell that a company is a startup as long as it:

  • is no older than 5 years
  • has less than 80 employees
  • employees feel the real impact on the situation

All the others – bigger, older, “stiffer” companies stay far away from the startup hood.

Startup – Commitment and Flexibility

The transformation of the Ukrainian job market was caused by an alternative notion – a startup. Middle-sized companies and big corporations stopped being a place for dynamic professional development. The experienced and talented employees started seeking better work conditions and further possibilities for personal growth.

Now, when the economic breakdown in 2009 is far behind, the conditions became more favorable for the young businesses to arise. What are the very conditions that help the startups to succeed?

Ave Outsource

I wouldn’t say anything new if I tell that the outsourcing is the most advantageous discovery of the 20th century. Ukrainian employee pool boasts a great number of talented and experienced employees, who can satisfy the demand of the international customers for lower prices, using the latest technologies. The startup is not the small business or franchise, meaning that – startups enable a flexible approach to the needs of the foreign clients.

Outsourcing provides a wide range of advantages for clients:

  • ensures an on-time delivery of the project
  • the outsourcing company is interested in a high level of communication with clients
  • regular meetings on the status of the project
  • software development goes together with Quality Assurance and Project Management

Talent Surplus

A startup is a motivated young venture created with an aim to use the talents and experience of people. The surplus of talent causes the increased motivation for setting a startup. The five centers of IT development in Ukraine – Kyiv, Dnipro, Lviv, Odessa, and Kharkiv have accumulated a critical mass of well-educated developers of all levels of proficiency. Actually, it is the IT sphere that stimulates the biggest growth of the startups.

There are few reasons why people decide to work for the startup, or small size company, rather than for a large company:

  • Employees make a large impact on the product, each idea is taken into account, the opinion of every employee matters. Startups offer an opportunity to work with the latest trends in the industry, and to create entirely new solution, not to update existing one.
  • Every employee matters – they impact vision and direction of the company in general. Normally, founders of the startup hire employees with their own vision, who can basically shake the company and suggest new directions.

Service Orientation

Software-wise, Ukrainian IT sphere is oriented at providing the customer-oriented software development. The main focus falls on the enclosure of the IT and business. Startups are more flexible than the companies, since they individually approach each client, constructing a specific team of developers and conducting the business analysis.

See You at the Conference

The model of cooperation has changed a lot since the big business entered the Ukrainian terrains. These days, the idea, skills, and experience play more than the finances. Nevertheless, money still matters and matter a lot. Still, how do they survive? Where do they get the money? A startup can be nourished by various business incubators, accelerators, venture funds, as well as from the business angels. Although, the greatest chance to meet a potential client is to visit an international conference.

Trotting the path to the financial stability, people with revolutionary vision and willingness to contribute begin their own startups. Ukraine shows a great percentage of surviving among the startups ensured by the high rate of certified programmers, service-oriented software development, and ability to provide the object-oriented services for a reasonable price.

Launch a Startup – Don’t Let an Idea Die

Ideas drive the world and if you have one – don’t let the grass grow used your feet. In the Inoxoft, we believe that ideas transform the world and your startup is the driving force of positive change. Share your startup idea with Inoxoft and see how it becomes a reality. We offer you our resources and experience to build up your startup. Like no other company, Inoxoft provides a high-quality project expertise and evaluation of your business idea.