The Impact of Startup Culture on Company Performance

Uzone.id — When you think of “startup culture,” you probably picture trendy offices and laid-back work environments. But there’s more to it than that. This culture is essential for any company, especially those aiming to become unicorns.

CB Insights info shows that the number of dunia startup unicorns is on the rise, topping 1.200 by March 2024. However, failure is a common pitfall, with about 20 percent of startups failing within their first year due to lack of funding, poor product strategy, and other factors.

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These “other factors” often boil down to internal company dynamics, such as how people work together, interact, and approach challenges. That’s why companies need to foster a culture that unites diverse individuals and promotes collaboration and results-oriented work.

Startup culture, what is that?

The concept of startup culture is rising, especially in young companies. Elizabeth Boyarko from Upsilon stated, “The concept of startup culture evolved in the second half of the 20th century. Startup culture refers to a set of values, beliefs, practices, and norms that shape the work environment and ethos of young and dynamic companies.”

It’s about having a shared mission and mindset. While traditional corporations often emphasize structure, hierarchy, and stability, startups tend to focus on innovation, adaptability, and growth. 

Charisse Fontes, founder of the culture consulting firm CultureCircle defines startup culture as a set of shared values, thoughts, and beliefs that shape how people work to reach the company’s goal. It’s how to put people first, including employees and customers.

“A little humanity goes a long way. Humanity will cross-pollinate the core functions of the culture from the way you recruit and hire, that first and last day experience, and all the interactions in between,” said Fonte, quoted from Built In news.

So, why does startup culture matter?

Startup culture is more than keeping the office atmosphere fun and exciting—it drives success and aims for the company’s goal.

According to a report by Glassdoor, 77 percent of employees consider a company’s culture before applying for a job, and 56 percent say culture is more important than salary. 

For startups, which may not always be able to compete with bigger companies in terms of pay, having a strong culture can be a major recruiting tool.

Culture in a company also can foster innovation. A healthy culture creates a space where employees feel safe to take risks and try new things. This is the spirit of innovation, and it leads companies to breakthrough products and services that drive growth.

A company’s culture also shapes its brand’s identity and character. When employees believe in the mission, they become brand ambassadors, which can attract customers and investors. 

How to build a strong startup culture?

Building a solid startup culture doesn’t happen instantly. It requires intentional effort from founders and leaders. 

First, your values should be more than just words on a website. You need to show what your business believes in and help guide everyday decisions. 

Point number two, as a founder or leader, how you act sets the tone for everyone else. If you want transparency, be transparent. If you want employees to take ownership of their work, you need to trust and empower them. That’s how leadership takes a big part of the culture of the company.

Three, skills are important, but when hiring, make sure candidates align with your company’s values. Make sure that they have the same vision as you and your company.

Then, a flexible work environment can foster creativity. Whether it’s offering remote work options or flexible hours, giving employees autonomy over their schedules can lead to higher satisfaction and productivity.

As your company grows, it can be hard to keep the same culture that helped you succeed. With more people joining, you get different ideas, and it’s easy to lose focus on your original values. If you keep your core values clear and regularly talk to your team, you can maintain the spirit of your startup culture as you expand.