8 Hot Industries for Start-Ups in 2013
NEW YORK (TheStreet) -- Ever considered starting a business to sell shoes online? A recent IBISWorld report pits the industry as one of eight excellent opportunities for startups.
The business of online shoe sales might seem a bit random, but consider the success of Zappos, for instance.
In fact Amazon's (AMZN) online shoe retailer fits perfectly into the IBISWorld report's thesis.
"Fragmented industries with a low level of capital intensity often present excellent opportunities for startups," analysts Kevin Boyland and Eben Jose write in the February report. "During the past decade, the key trend creating the majority of these opportunities has been the shift toward providing services online."
Start-up prospects are most prevalent in the retail and service industries, with e-commerce presenting the biggest opportunity, particularly with the likes of Amazon, eBay (EBAY) and Etsy or platforms like Shopify taking away the challenges presented by technology for entrepreneurs.
Nowadays, a small online business can sell its wares through one of these portals, which eliminates the hassle, time and resources needed to create an online store.
"All of these factors have made starting an online business easier than ever," the report says.
To be competitive, though, start-ups will have to "keep pace with the high level of technological change that has transformed their respective industries. Additionally, access to capital via investments or loans will play a critical role in determining the speed at which firms can grow the scale and scope of their operations," the analysts caution.
Given their low barriers to entry, high level of technological change and strong revenue growth expectations, there are eight industries that present prime opportunities for startups in 2013, according to IBISWorld.