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[US] [Report] IBISWorld Lists Five Hot Startup Sectors

Many industries, from the well-known to the obscure, are booming with opportunities for startups, according to IBISWorld.

By analyzing revenue figures, growth trends and profitability levels of more than 700 industries, the U.S. industry research house lists five hot sectors that have start-up potential: education and employment, Internet and technology, green, and residential and commercial construction. IBISWorld believes the industries in these sectors are well-positioned for the next five years.

Here’s a snapshot of each of the five sectors:

Education and employment: IBISWorld says that the industry is in its growth phase, but that’s not the only reason it’s a good one for start-ups. Barriers to entry are generally low, and like the overall education sector, the industry has a low level of capital intensity and start-up costs because of its high labor intensity.

Internet and technology: Exploding usage trends are the driving forces behind the expanding Internet and tech sectors, which are pushing businesses, retailers and advertisers to adapt. In these sectors emerge two opposite paths of
opportunity: a highly innovative start-up that has a big idea and sufficient capital, or a start-up that services these growing sectors (which generally has lower barriers to entry and start-up costs).

Green: As awareness of and concern for environmental issues grow, shoppers are demanding more locally grown food, retailers are selling more sustainable products and businesses are implementing more eco-friendly
practices. Where a small business could tap into the popularity of renewable energies would be consulting or installation services, such as installing solar panels on homes and businesses.

Residential and commercial construction: While residential and commercial construction came to a screeching halt in the wake of the subprime mortgage crisis and housing bubble burst, housing demand is expected to improve given stronger consumer confidence, higher growth in disposable income, subsiding fears about buying into a falling market and sustained low interest rates.

Health: Healthcare reform may be shaking things up, but some related industries are benefiting from it. Aside from alternative health care, industries that will be affected by healthcare reform and that offer start-up opportunities include Home Care Providers, Elderly and Disabled Services and Physical Therapists.

You can download the full report here.


Daniel Goh is the founder and chief editor of Young | Upstarts, as well as an F&B entrepreneur. Daniel has a background in public relations, and is interested in issues in entrepreneurship, small business, marketing, public relations and the online space. He can be reached at daniel [at] youngupstarts [dot] com.

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