We’re all familiar with Instagram, well at least 35 million of us are. The hipster camera app with the addicting ability to let us show off and share our photography skills, or lack there of photography skills, disguised by beautiful filters. If I had a nickel for every time Forest Perlmutter “instagrammed” a photo of his current meal, I’d be a rich man. Ironically, when Facebook acquired Instagram for 1 billion, the company had generated nothing in revenue, and only employed 13 people.
See the metaphor within this instagram photo:
Is Instagram bad for the economy? The billion dollar company created 13 whole jobs, and showed the aspiring entrepreneurs of America that $ money can be made with few expenses and fewer employees, especially if going the app route. Using EC2 (a cloud computing system) and enough monitoring, Instagram can successfully scale to 1 million additional users overnight.
According to this article, “The average number of workers per office fell 10 percent between 2000 and 2011 to an average of 15.7, according to the Labor Department.”
Start-ups tend to be smaller, especially tech start-ups, and a recent trend shows that the founders are only hiring themselves. 12.7 million people are still unemployment, and unfortunately the trend of minimizing workers within budding businesses has begun. The advances in technology has allowed our most popular social media startups to find seemingly overnight success with so few workers, yet what exactly do certain social media companies like Instagram positively contribute to physical society? Has Instagram set a bad example for businesses and entrepreneurs to come?