In talent-rich areas where startups seek to grow, the presence of large firms creates a competitive labor market that significantly impacts startups' ability to scale.
According to the study, when large firms ramp up hiring in tech clusters, startups respond by raising salaries, leading to a trade-off in expected growth.
Startups in these crowded markets may find themselves offering salaries that are 10% higher than they would in less competitive areas, limiting resources for other growth initiatives.
The research highlights a paradox: while tech clusters offer access to talent, they can also stifle startup growth due to the intense competition for skilled employees.
Collection
[
|
...
]