Instead of competing against the little guys, many are funding them. A smaller, innovative startup is more nimble and can incubate ideas more quickly than within the vast infrastructure of a larger corporation. As an example, Campbell Soup Company has invested $125 million in a venture fund to help finance food startups.
The combination of ready capital and established manufacturing facilities and distribution channels with new, innovative ideas appears to be the next wave of opportunity in the U.S. Consider that between 2012 and 2015, the grocery store food and beverage category grew by only 2.3 percent a year, but the largest 25 food and beverage companies contributed only 0.1 percent to that growth. The rest was generated by 20,000 small companies outside of the top 100.
It’s true that the vast majority of startups fail. But the one thing they have in common, which larger companies typically do not share, is the opportunity for rapid growth.
The World Economic Forum recently released a report purporting that the increased functionality of robots will create a loss of more than 5 million jobs in 15 major developed and emerging economies by 2020.
However, other experts claim that it is simply the nature of work that will change. People will continue to work, but they may not have “jobs” in the traditional sense.
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