Small start units

The word Small Start Unit (also called small start-up, or SSU) emerged as a business term to address small entities that are going to launch a specific business model in the market place. This not only on a larger geographical scale, but also with a vantage in technology. In combination that gives them a sustainable competitive advantage, which they play off against (major) market competitors right from the beginning. SSU's are mainly of Western origin.

The promising business model of a Small start unit is likely to attract venture capitalists . Such VCs supply SSU's with needed capital for the get-go. And with this capital SSU's are able to set up the headquarter in their home market, which is typically a well developed market in a Western country. They generate new jobs in this market by employing high-end engineers, marketing professionals and well eduacted managers.

Basically the characteristic of an SSU is: 1. The core competency resides in a future technology; 2. The aim is to operate on a global scale right from the beginning; 3. There is a high growth orientation within the firm; And 4. there is a flexible network related to them, consisting of internal and external stakeholders.

By pursuing a global approach SSU's do not only exploit emerging and lucrative selling markets, but also lower their costs and boost profits more quickly by outsourcing work to such emerging markets (see George S. Yip). SSU's take advantages out of emerging markets as well as Western markets. So globalization allows SSU's to become long-lasting and successful business entities.

External links

* SSU's are ready for globalization [http://futuretag.com/blog/BlogEntry.2005-12-27.1607]
* Success for Small start units [http://www.urslerch.ch/small-start-units.html]