The impact of “unicorn” companies on the reactivation of the economy

By Adriana Gallardo

Unicorn companies are the pot of gold at the end of the rainbow for the entrepreneurs and countries that saw them born. Especially in times of crisis, since they have contributed to the reactivation of the economy through the generation of employment.

It must be remembered that “unicorn” are the companies that, without being listed on the stock market, nor having been acquired by a third party, achieve a value of 1,000 million dollars or more worldwide.

In Latin America, during 2020-2021, approximately 3.7 million companies were closed due to the COVID-19 pandemic. However, the unicorns increased their workforce. For example, Konfío, which grew 80%, and StoneCo, a Brazilian platform, grew 11% during 2020.

Unicorn companies also attract foreign investment and accelerate technology adoption. Robinhood and Coinbase have progressively increased their number of users and have helped accelerate the adoption of financial technology in America.

Some qualities that unicorn companies implement —and that we can put into practice right now— are:

-Customer focus: many use active listening techniques to better understand customer needs and offer solutions that are tailored to their requirements. For example, Rappi, a food and product delivery company in Latin America, uses feedback from its customers to improve their user experience and offer additional services, such as medication delivery.

-Collaboration with other companies and startups: this allows them to complement their offers or develop new technologies and solutions. For example, the technology company Globant has established alliances with Google and Amazon to develop artificial intelligence and cloud technology solutions. So you can take advantage of the experience and knowledge of these companies to stay up to date.

-Solid business culture: this allows to maintain cohesion and operational efficiency. Many emphasize the importance of an inclusive and diverse business culture that encourages collaboration and creativity. An example is the Brazilian financial services company Nubank, whose corporate culture is customer-focused, where innovation and creativity are values that encourage employees to challenge the status quo.

Unicorn companies play an important role in reactivating the economy, generating jobs, offering financing to SMEs and helping to accelerate the adoption of digital technology. As entrepreneurs, we must learn a lot from them, especially to develop the ability to find solutions and opportunities in adversity scenarios.

* Adriana Gallardo is an international speaker, author and leader of Adriana’s Insurance emporium. Business and Life Coach, author and producer. She is the creator of “Chingona Circle”, a group that empowers women and the series of conferences “Empodérate”, which help entrepreneurs and business owners to achieve their goals. She lives in California. IG @ adrianagallardo1