Key success factors that enable Silicon Valley success

Silicon Valley is a magnet to which numerous talented engineers, scientists and entrepreneurs from overseas flock to in search of fame and to participate in a technological revolution. The unprecedented success of the Valley is a testimony to the contributions by people from diverse cultural and racial backgrounds, made possible by the favorable political, economic and intellectual climate prevailing. There are several crucial factors that makes Silicon Valley a great success.

Firstly, it has the largest concentration of great computer professionals and the best supporting services in the world, and easy access to world-class research institutions, like Stanford University, University of California Berkeley, which continually nurtures would-be geniuses, which the industry needs in order to move forward.

Secondly, it actively encourages and even supports risk-taking. Failure holds no terror and there is no stigma attached to a failed effort. On the contrary, they will try even harder next time round. Such never-say-die approach is the main ingredient for the ultimate success in entrepreneurship and technological breakthrough.

A third decisive factor is the vital role of venture capitalists that willingly support promising start-ups with urgently needed initial capital to get them started. Some would even give failed entrepreneurs a second chance if convinced that a fresh concept might lead to eventual success. This is essential because without initial capital start-ups would never get up from the ground.

Another reason why so many successful innovations originate from Silicon Valley is the fact that strong data and IP protection laws protect new ideas. This creates an environment where entrepreneurs feels comfortable in developing new ideas, without worrying about that somebody might steal their secrets.

Of equal importance, many bright young people and middle level professionals are keen to work for a new venture at substantially reduced remuneration, as it offers more scope for entrepreneurship and job satisfaction than the established companies. There is also a pride of achievement if their efforts contribute to its success.

Intellectual challenges aside, it is a common practice for start-ups to offer generous share options to employees in order to attract the right talent. This is a powerful incentive to motivate the staff to do their utmost and to share in the company’s prosperity if it reaches its goal. Many regard this as the foundation of a successful enterprise.