Startups: Solving Big Problems and Driving Growth

Startups aren’t just about making money or disrupting industries anymore. They’ve become the engines driving real change—addressing some of the world’s most pressing issues while contributing to economic growth. For today’s founders, it’s not just about building the next app or service; it’s about building something that makes a difference. This is both a huge opportunity and a responsibility. In fact, the startups of today have the potential to shape the future in ways we’re only beginning to understand.

The Role of Startups in Solving Global Problems

At their core, startups are about solving problems. The biggest successes often come from founders who identified a gap or inefficiency in the world and set out to fix it. According to the Global Entrepreneurship Monitor (GEM) report, 62% of people believe entrepreneurship can be a path to social change. From reducing waste with eco-friendly products to improving healthcare with AI-driven diagnostics, startups are tackling real-world challenges head-on.

Take the issue of climate change, for example. The climate tech startup ecosystem is booming, with over $70 billion invested globally in 2022 alone, according to PwC. These companies are developing innovations like renewable energy storage solutions, carbon capture technology, and sustainable agriculture practices that can help reduce our carbon footprint and combat climate change. Startups like Climeworks, which captures carbon directly from the air, and Impossible Foods, which offers plant-based meat alternatives, are just two examples of how new companies are driving change in previously static industries.

But it’s not just the environment that startups are reshaping. Healthcare, education, and financial inclusion are all sectors being transformed. The rise of telemedicine startups, particularly during the COVID-19 pandemic, is a perfect example. Companies like Babylon Health and Kry leveraged technology to provide healthcare access to millions, especially in underserved regions, proving that startups can directly contribute to societal well-being.

Driving Economic Growth

Beyond solving problems, startups are a major force in driving economic growth. They create jobs, promote innovation, and contribute to GDP in ways that traditional industries often can’t. In the UK alone, startups and small businesses accounted for over 99% of the business population in 2023, according to the Federation of Small Businesses (FSB). In the U.S., startups are responsible for nearly all net new job creation over the past few decades, with a Kauffman Foundation report showing that young businesses (less than five years old) were responsible for about 20% of gross job creation.

Why are startups so essential to the economy? One word: innovation. While larger corporations tend to move slowly and stick to what they know, startups are nimble and disruptive. They experiment, pivot, and push boundaries, often leading to breakthroughs that can spur entire industries. Think of how companies like Airbnb revolutionized the travel industry or how fintech startups like Stripe have reshaped online payments. They’ve not only created jobs within their companies but also enabled entirely new industries to flourish.

A Call to Arms for Startup Founders

If you’re a founder or aspiring entrepreneur, the message is clear: startups aren’t just businesses—they are vehicles for impact. You have the potential to change the world, solve real problems, and drive both societal and economic growth. But with this potential comes responsibility. The global challenges we face, from climate change to inequality, are daunting, but they’re also opportunities for innovation.

This is the time to think bigger. Don’t just build a business that’s focused on short-term profits. Build something that makes a difference. Whether it’s creating a product that helps people lead better lives, solving environmental challenges, or providing access to services that were previously unavailable, you can be part of the solution.

And the world is ready for it. According to a 2023 report by Deloitte, 80% of millennials prefer to buy from brands that have a clear purpose, while 72% are willing to pay more for sustainable products. Consumers are demanding change, and startups are uniquely positioned to deliver.

Where to start?

The first step is identifying a real problem—one that matters. Look at the issues that resonate with you and those that are affecting the world around you. Are there inefficiencies in how healthcare is delivered? Are there ways to reduce waste or improve sustainability? Can you make education more accessible?

Next, focus on execution. Building a startup is hard work, and you’ll need capital, a strong team, and a clear vision. Don’t be afraid to seek advice from experienced entrepreneurs, investors, and mentors who have been in your shoes. Learn from both successes and failures, and always be willing to adapt.

Finally, don’t lose sight of your mission. In the startup world, it’s easy to get distracted by the pursuit of growth and financial success. But the most impactful companies stay true to their mission and focus on solving the problems they set out to address.

Closing thoughts

Startups are more than just companies—they’re drivers of change, innovation, and growth. The world needs founders who are willing to tackle big problems and think beyond profits in the short term. So, if you’re a startup founder, now is the time to make your mark. Build something that matters, and in doing so, you’ll not only contribute to the global economy but you'll build something of real value, and also help solve the world’s most pressing challenges.