Whether you want to book a cab, get food delivered at your doorstep or make reservations at a hotel, services that startups offer have seeped into our lives rather seamlessly. From cab-hailing service Grab in Singapore to graphic designing tool Canva in Australia, China’s Internet technology company ByteDance to India’s hotel chain OYO—there are several success stories that point towards the growth of startups and its subsequent effect on other organisations.
There is a lot that goes into making a startup successful—a viable business idea, the right approach to investment and funding, and the ability to take entrepreneurial risks to build traction for a service or product. Startups have not only reformed existing services, but they have also created a demand for several new ones—some of which have now become indispensable.
How are startups disrupting markets?
Be it introducing competitive dynamics into the business environment or bringing new ideas to the forefront, startups have a crucial role to play in the economy. They drive the creation of new jobs and generate opportunities where additional value can be created.
Across APAC, startups have gained ground in a wide range of industries—changing the dynamics of the marketplace and catering to nearly every consumer need. However, different sectors are witnessing this boom at varying degrees, with startups penetrating some areas more than others.
Five leading sectors for startups in APAC
Even though startups have made their way into a multitude of domains, LinkedIn’s data-backed insights revealed that 70% of startups in APAC are concentrated in five sectors—high tech (31%), corporate (10%), manufacturing (10%), recreational (10%) and finance (9%). To help you better understand the startup ecosystem in APAC, we will walk you through these sectors where startups are mainly concentrated.
1. The tech sector continues to lead the charge
In a world where technology dominates almost every aspect of our lives, the clustering of startups in the tech sector comes as no surprise. In fact, 1 in 3 startups in APAC are in tech, making this the highest concentration across sectors.
With this, they also bring great opportunities for consumers to make use of new technological advancements. India has the greatest percentage of startups in the tech sector (37%) across APAC. E-commerce and technology startup Bizongo and payment solutions provider Razorpay are examples of tech startups in India that were featured in LinkedIn’s Top Startups list 2019.
In Australia, Canva recently celebrated its one billionth design created using its globally recognised graphic design tool.
2. China as the manufacturing hub
The Fourth Industrial Revolution, along with the exponential shifts in e-commerce, have been driving the need for innovation, resulting in the snowballing of manufacturing startups across APAC.
When it comes to startups in the manufacturing sector, China emerges as the leader—having 18% of its startups in manufacturing. Manufacturing is the second largest sector to show startup activity in China—46% of all startups are in high tech and manufacturing. An example here is WM Motor, an auto manufacturer startup in China that developed two electric vehicles.
3. Reinventing the corporate sector
One in 10 startups in APAC are in the corporate services sector, with this number likely to grow in the coming years. Startups have introduced several new services in this domain. In India, Tapchief is reimagining the future of work by connecting people with veterans in their profession. Similarly, InterviewBit prepares job seekers for tech interviews.
4. Innovation in recreational services
Singapore has one of the highest proportion of startups in the recreational sector in APAC. After tech, recreation is a sector which sees the maximum impact from startups in this country.
Singapore-born startup ONE Championship has grown to become Asia’s largest sports entertainment company and internet company SEA group has diversified their portfolio to include digital entertainment, e-commerce and digital financial services.
5. Finance is gaining traction fast
Finance is also catching up and steadily emerging as an important sector for startups, giving them a conducive atmosphere to grow. This has been particularly true in the case of Australia.
In Australia, 11% of startups belong to the finance sector. LinkedIn’s list of Top Startups is also reflective of their strong foothold, with 10 of the top 25 (or 40%) startups in Australia concentrated in banking, insurance or wealth management. Judo Bank made its way into the small business lending space in Australia. Volt Bank, an Australian consumer neobank, is also a startup that became immensely popular. Volt received its banking licence in January this year—becoming the first Australian digital startup bank to do so in more than a decade.
How can you respond to these changes
● Inform your talent strategy
The growth of startups can signal emerging skills and in-demand roles. Anticipating disruption in your industry can help you plan ahead
—be it hiring new talent or upskilling your existing workforce to keep pace with these changes. LinkedIn Talent Insights can help you get
a deeper understanding of such new trends, so you can upskill your talent with the right training programs.
● Build a strong employer brand
Whether you’re a multinational corporation or a young start-up, you have something unique to offer. A strong employer brand is crucial
for attracting potential candidates, as it creates a narrative about the organisation and its culture. In today’s competitive talent
marketplace, having a well-crafted employer brand can help you stand out and achieve your business goals with the right talent.
LinkedIn Talent Solutions
LinkedIn Talent Solutions