Silicon Valley comprises of cities and towns towards the south of San Francisco. It is United States’ hub of technological companies and start-ups that have gone forward to become giant in their own field. Companies like Apple, Amazon, Microsoft and eBay have their head quarters situated in the Silicon Valley. Start-ups that intend to leave a footprint in the business world tend to shift their business to Silicon Valley.
The emergence and success of so many global leading companies from Silicon Valley makes it a coveted area to pursue one’s entrepreneurial intentions in and keeps it far ahead of any other business hub.
PROS OF SILICON VALLEY
Silicon Valley is the dwelling place of over 2000 tech companies, which is the densest in the whole world. The location of Silicon Valley is such that everything that whether a new start-up or a prominent company might need lies in close proximity. From suppliers to customers to research team, everything is available at Silicon Valley. This gives any company based in Silicon Valley an added advantage.
- MORE JOBS
The more the number of companies, the more people they require to get their work done. This increases the job openings by manifolds which boosts employment and thus contributes to the economy.
- TAX REVENUES
With the increasing number of people who aim at starting their own independent business and establishing their office at Silicon Valley, there is more amount of tax coming into the pockets of the government. Thus, Silicon Valley is not only the hub of entrepreneurial success but also the hub of collection of tax revenue.
- SPIRIT OF COOPERATION
Numerous local business owners at Silicon Valley went to school or grew up together. This pre-existing cordial relationship and friendship amongst these people make them more likely to promote each other’s company genuinely and become a well-wisher for each other.
As the whole of Silicon Valley is filled with companies that want to establish themselves and do better, the companies try to help each other grow in whatever way possible. They collaborate amongst themselves to promote each other and grow together.
- CULTURAL DIVERSITY
As Silicon Valley attracts the best brains in engineering from across the world, these people settle in the Silicon Valley and pursue the dreams of owning their own independent successful business. This fact makes Silicon Valley a very culturally diverse place. In fact between the years 1995 and 2005, the most number of start-ups in Silicon Valley were founded by immigrants.
- BRAND VALUE OF SILICON VALLEY
When owner of the company says speaks about his company being established in the Silicon Valley, people take the owner seriously and with reverence. They automatically tend to view the company in a good light and appear to be interested in the company, such is the brand value of Silicon Valley. This brand value is important for any company.
There is no dearth of mentors, guidance and knowledge in the Silicon Valley. in this place it is easy to find a mentor from one’s own field and seek his guidance in order to pursue and be successful in one’s own entrepreneurial venture.
- EASY ACCESS TO INFORMATION
Information is a key element of business. Information is power. If the company resides in a place where there are many of its own kind, the flow of information is much smoother due to the professional network.
- EFFICIENT LAWS AND LEGAL SUPPORT
Silicon Valley has fair and efficient laws and policies to support local start-up businesses. These policies safeguard various business interests and secrets of trade. They also prevent new business from falling apart or being exploited by the government.
CONS OF SILICON VALLEY
- ALL BENEFITS OF SILICON VALLEY DO NOT GO TO U.S. CITIZENS
Many high-end tech jobs are outsourced to foreign born workers as they have the relevant skill and efficiency. The number of Americans who have graduated as software engineers from American universities and are competent enough are not enough.
- NEED HIGH BUDGET
To establish one’s company in the hub of global technological business is not an easy task to start with. Without a sky-high budget for the start-up company it becomes almost impossible for one to fulfil the dream of having the company in Silicon Valley.
- COST OF LIVING
Silicon Valley does not just need a high budget to establish a company, it also needs a high budget for livelihood. The high cost of living that Silicon Valley poses makes it hard for the owners of start-up companies to be able to live a regular lifestyle, even if they somehow arrange for the budget of the company.
The dream of having a successful entrepreneurial venture has brought numerous people to Silicon Valley over the time. The entrepreneurial culture of the place attracts them. This has made Silicon Valley a very crowded place to be in.
- REALITY CHECK
Every year, many people come to and settle in Silicon Valley with unique ideas that they want to showcase and implement in the business of their dream. But the truth is that not all of them turn out to be successful. Establishment of the company in Silicon Valley does not guarantee its success. Only a few companies do break through.
- NO LOYALTY TOWARDS COMPANY
As the place with filled with companies that require the same type of competency, employees leave their job as soon as a find some job that pays them a bit better. They rarely have any emotional connection with the company that they are working for and do not bother to stick with the company through its hard times.
- SMALL START-UP COMPANIES AT DISADVANTAGE
This huge market of technological entrepreneurship with all its competition and the need for huge budget is not favourable for the small start-up companies who have great idea but not enough budget to implement them.
Silicon Valley boosts the economy of the country greatly. It is a place where people work tirelessly to put their ideas into something tangible. No matter what, the reverence that the mention of Silicon Valley induces can replace nothing else.