While the vast majority of high-tech startups fail (stats range from 75 percent to 90 percent), they are still a key driver of job creation in the United States. However, with the unique opportunities typically associated with working at a high-tech startup, there are also risks that the job seeker should carefully evaluate, say experts at Harris Allied, a New York City-based executive search firm.
“The Alibaba IPO is a good barometer for what is expected to be a hot market for tech startups. We are already seeing high-tech startups outpacing the private sector in terms of job creation. While these companies have lean beginnings, they grow rapidly in the early years, adding jobs along the way, often at a greater velocity than other kinds of small business. But there are some inherent risks in accepting employment at the wrong startup that should be carefully weighed when considering an offer,” says Kathy Harris, managing director of Harris Allied. “A job seeker needs to look beyond their fun and enticing workplace cultures and see clearly that their failure rates can destroy jobs as well.”