The Perils of Launching Startups Close to Large Corporations

HBR
HBR
1y ago
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Research indicates that startups located near major companies face significant challenges. Proximity to established firms can lead to increased competition for talent and resources, and potential intellectual property conflicts.
The Perils of Launching Startups Close to Large Corporations
A What happened
Research indicates that startups located near major companies face significant challenges. Proximity to established firms can lead to increased competition for talent and resources, and potential intellectual property conflicts.

Key insights

  • 1

    Talent Competition: Startups often struggle to attract and retain skilled employees who may prefer the stability and benefits offered by larger companies nearby.

  • 2

    Resource Scarcity: The presence of large firms can drive up the costs of resources such as office space, making it harder for startups to sustain their operations.

  • 3

    Intellectual Property Concerns: Close proximity to big companies may increase the risk of intellectual property theft or disputes, as ideas and innovations overlap.

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