Start Up Data Analytics Opportunities
"Data Analytics" becomes a buzz word in the past few year in the influx of the digital transformation era. Organizations around the world utilize data analytics as a strategic domain to boost up their growth driving their organizations in a faster pace. To keep up with the latest new trends transforming to be a data-driven organization, it is an huge investment for an organization prior the time for their short and long term successes.
Even though there are a huge investment for the change, the demand of companies around the world to utilize data analytics as a tool to accelerate organizations' growth is still high. However, there are a shortage of people who have these particular skillsets to help organizations with their change. Therefore, Many organizations outsource data analytics development projects for consultants.
From my observation, the gap between the demand and supply for data analyst jobs is very interesting. My intension for this web scraping project study is to explore a data analytics industry if there are some opportunities to be successful in the industry.
Source of data:
The data is extracted from https://clutch.co/ by using Scrapy (Python)
Clutch.co is a trustable search engine website to navigate many professional services like IT solutions, marketing, web design, etc. For this project, my focus is only on data analytics companies.
- Company name
- Minimum project size
- Hourly rate
- Founded Year
Analysis Around the Globe
From ranking numbers data analytics companies, the pie chart[Figure 1] reveals that North America is a continent where many data analytics companies are the most concentrated following by Europe and Asia.
Figure 1:Numbers of Data Analytics Companies by Continent
On the other hand, top 15 numbers of data analytics company [Figure 2] is mostly concentrated in the United States following by United Kingdom, India, China and Canada.
Figure 2: Top 15- Numbers of Data Analytics Company
On the other hand, the correlation between the minimum project size in USD VS continent [figure 3] demonstrates an interesting correlation. There are more medium and small size companies than large companies. US and European companies tend to receive higher minimum bigger project than in Asia for its revenues observing by minimum cost on project revenue. Interestingly, there are only few competitions in Latin America countries, Australia, New Zealand and Africa in this industry.
Figure 3: Minimum Project Size [USD] VS Continent
While there are good amount of minimum project size less than $5,000 [USD], some medium and small companies receives big projects that could charge for more than $5,000[USD] as well. This reveals that there are some more rooms for medium and small size companies to grow within high competitive markets. Meaning, there are more demand on data analytics companies for start up companies to expand and serve organizations in the digital transformation especially in Australia, Latin America and Africa.
United States of America
This section will focus only in the US opportunities since North America contains more than 50 percent of the data analytics company around the world and most of them are in the US.
Figure 4: Numbers of Data Analytics Company in United States by State
Top 15 ranking for numbers of data analytics company by state demonstrates a interesting finding that there are more data analytics companies in Tennessee following by California, New Jersey, Georgia and Texas. Meanwhile that the GDP of the state of Tennessee is on ranking #18 in 2019[source: worldpopulationreview.com]. Normally, the GDP and businesses should follow the same trend. However, the data is not.
My curiosity triggered me to find more information for why "TN" becomes the most populous data analytics state for its revealed numbers. I found that Tennessee support new start up business to grow by giving zero personal tax for new start up businesses. Meanwhile, the state has a mentorship program to support new start up business especially in Tech to grow. [Cited: nerdwallet.com (June 15,2015)].
Even though "Data Analytics" becomes a buzz word in 2019, it doesn't mean that there will be no room for start up data analytics company around the world. The opportunities are still waiting for new entrepreneur to reach out to solve customers problem with their expertise. Maybe, less competitive might be a key to easily access to customers.
Looking in to the US, the opportunities to grow data analytics business might be Tennessee because of the state policies to support start up businesses with tax incentives and support.
To provide a guidance for start up entrepreneur, the project owner plan to extract more insight these following list:
- Service Lines
- Industry Focus.
These data will allow us to tell what industry has the most demand and what type of data analytics they should focus to be more competitive in the industry.