The latest rounds of IPOs and rallying public markets might have brought back hope of a better future in the hearts of many, but one can’t help but wonder if they might lead to a false and unstable recovery. Look at Europe’s sinking recession that is spreading like plague among many countries, its debt issues, the rise of oil and gasoline prices, the horrible unemployment rates. The moderate growths announced by FED brings no ease to the hearts of people and no relief.

But as Arwen from Lord of the Rings says light can be found in the dark, and in the economic sector, this light appear to be entrepreneurs who start their own business. They are the dreamers who won’t give up fight and keep believing that no matter what something can be achieved in this crumbling world. People that can change and improve the economy with us staying inside the house.

Small Businesses, Start-ups: the Real Solution for the Economy


In 2011, a study done by Forrester showcased some interesting details to backup this hypothesis. Apparently 78% of small business in the US expect to see growth within two years and 39% of those expect their number of employees to double. According to some numbers from the U.S. Small Business Administration, this is no surprise, as small businesses represent 99.7% of employers firms. These businesses have managed to create 64% of new jobs over the past 15 years.

And today small business find themselves in a really unique position, especially when looking at things from the tech sector – a sector that is considered to be the future of the United States. You only have to take a glance over to Silicon Valley’s recent explosion of startups to see that the tech sector is being pumped by innovation and passion. The dogma behind these start-ups is that perpetual innovation and intuition capabilities help drive the future of the business.

Looking to Raise a Lot of Money

It also helps the start-up to act as a sort of chameleon, allowing it to shift and become relevant to whatever the world might bring on its plate. In times like this, Facebook, a social networking company that started out in a dorm room, is planning to file for its first IPO and unexpectedly or not, the act holds massive economic importance.

This week, the company even filed a new amendment annexed to its initial public offering in order to raise its share price to as much as $38 per share. The minimum price was set for $34 per share. With the new IPO price, the company is set to rise over the $100 billion valuation as was expected ever since the company’s paperwork first went public in February 2012. The paper also commented a little on the recent Instagram acquisition announcing that the deal will be settled in 2012.

Facebook’s IPO: Crossroad of Traditional and Digital Economy

Facebook currently boasts more than 900 million users and is expected to be pass the 1 billion barrier in the upcoming months of summer, with almost half of the users registered being active everyday on the site. Just think about the fact that back in 2006, Facebook only had 12 million users. Clearly, Facebook has managed to get under the skin of people and has become part of the fabric of life. This is not easily undone.

But will the Facebook IPO affect economy in any way. Of course it will. The Facebook IPO is expected to be a boom not only in the tech sector but in the startup/small business sector as well. The IPO should be seen as an opportunity for jobs and for people to use their work in order to impact the world that we are all part of. And what is the world looking for? It is looking for economic growth – the kind that offers means of existence to billion of people and creates working environments for everybody.

Digital Environment – a Job Creator

Since its creation, Facebook has hired more than 3,000 people for its private staff, plus another 450,000 affiliated jobs. With the US Dollar’s gloomy long-term outlook and the depressive unemployment rate, a successful Facebook IPO might animate some of the sleeping spirits found today in the US stock markets. This in turn could fuel the demand for US dollars and oversea investors in order to help the economy pick up the paste.

The Facebook IPO is something symbolic and of great significance. At TNW Conference in Amsterdam, I saw so many people with start-ups, each of them believing in their product. Start-ups aren’t only about the digital world, rather they use this new environment – the Internet – to spread ideas all over the world. Facebook has consolidated people’s need to share, to be liked, to be connected. Start-ups are investigating and satisfying various needs that may or may not be connected to the online.

We Live Online

The Internet is the perfect channel to be connected with customers, people that share the same ideas as you and it’s the fastest way to reach to others. Proof to that is the incredible growth in the Dot-com bubble. Even if the bubble eventually went burst, it was a way to educate the market, to consolidate and cement the world and make it look like today.  And that’s how we’ve arrived to a moment when a company like Facebook is on everybody’s lips.

Companies no longer advertise their own websites, but they choose Facebook.com/companyname because it creates an interaction with their customers. Slowly, but surely, people start to consume things online: they spend more time playing social games, they browse more on their iPads, they tweet more. Thus, they spend much more time being online, spending online than outside, in the physical world. People want and can be informed and entertained as soon as possible.

Facebook’s IPO, in my opinion, marks the peak for the digital economy. We all get it why Google, Amazon, eBay and others are awesome, because they are somehow related to physical products, they are more tangible. Facebook is different and by being different it will inspire thousands of start-ups that will contribute to the prosperity of the digital economy.

 
Managing Editor

is the Managing Editor of Technically Personal. When he has some extra-time, he writes about Windows 8 apps and reviews them on Wind8Apps. Believes that technology is the main engine of civilization. Send him a tweet or make him your Facebook friend

 
 
  • http://twitter.com/browsewire B’wire Consulting

    The digital economy is gaining momentum and the increase in the usage of smartphones, tailor-made for social networking is an icing on the cake.