Startups, a word that defines passion, mission, madness and determination, tends to require all kinds of skill set right from low technology knowledge and high thinking, managing skills and everything that is held by both. Whereas skill based startups, one specialized skill is required. Knowledge of a particular subject or topic such that you know every tip and turn of the subject or topic to make you so-called a pro in the given specific field, is all that you require for skill based startups.
The skill based startups have a very stable economy, and most of the times the payments that the employee gets are also high as compared to other startups. But the skilled startups also have a very major drawback along with some great beneficial points that makes it a current need of the startup economy considering the unstable nature regarding the job, the skill set required and many other things.
In the last 5-6 years, there has been a massive boom in the number of entrepreneurs and start-ups, but more than 80% of the startups are failing due to various reasons such as the wrong timings for market expansion, management problems, funding, so and so forth. This one-way road of entrepreneurship is not that easy, once you are in, you are in and then you cannot back.
All this increases the pressure on the startup economy as well. The startups that focus in a broader section of the market; generally hires people with a vast horizon of skill and not a single set. Because if the particular start-up requires a skilled professional for some work, they outsource it, thus reducing the job availability and again disturbing the economy to such an extent that it becomes difficult to control the flow.
And even if the startups hire a skilled and trained individual for a particular job, it becomes really difficult for the person to cope up with the outside progress especially in the IT sectors, where the knowledge you posses for a skill comes with an expiry date because of continuous advancements in the field. Thus the individual has an understanding that is of no use to the company now hence gets fired or gets his or her name in the training list, thus wasting the individuals time as well as money.
To avoid all of this, skill based startups have started to grow in number because of their stability.
Skill-based startups also increase the employment, as they have more job opportunities and positions.
Considering the statistics, most of the startups need to be boot-strapped in the present scenario because of difficulty in obtaining funding, in such startups that mainly focuses on a small section of the market and thus require only skilled employee helps the start-up to stabilize on all terms.
One major problem, observed in skill-based startups is that there is a limit for payment of the employee as the company focuses on the smaller section, but this pay can be better than many other start-up employees.