“Forget Silicon Valley — build your startup where you live”, is an eye opening post I’ve just read on VentureBeat. It echoes the message I have tried to convey in my previous article: The Danger of Silicon-Valley Driven Startup Mania in Africa
The main message is this:
When it comes to choosing a location for a startup, many entrepreneurs head for the hills of Silicon Valley or a few other tech hubs across the country. Oftentimes this happens because of the perception that a high-tech startup must be located in a traditional urban “high tech hub” in order to be considered legitimate. However, remaining in your original hometown may actually be a better practice for business success, according to a recent study from the Yale School of Management. The study, from Olav Sorenson and Michael Dahl, suggests that startups that remain within their founders’ home region are more likely to earn higher profits and survive longer than companies that relocate.
Advantages to staying local can include lower overhead costs, avoiding heavy competition for talented employees, and even having the comforts of home to help ease you through the inevitable stressful periods. Yet, for all the clear advantages, you’ll still face significant challenges when based outside the center of the high-tech world. How can you effectively interact with potential partners and clients who are largely based in the hubs? Where will you find the necessary investments? How will you get noticed by journalists and thought leaders if your office isn’t in Silicon Valley?
Challenges may exist, but they don’t negate the benefits of remaining local, nor should they undermine the desire to keep a business local. Here are some tips to help you build a successful high-tech business in your hometown.
Read the full article at http://venturebeat.com/2012/08/26/forget-silicon-valley-build-your-startup-where-you-live/