One of the greatest impacts of the global financial crisis in 2008 has been the rising unemployment levels world over.
Whether in the US, Europe or Asia, unemployment is staring us on the face almost everywhere.
Governments across the world are working towards spiking up the economy; rev up multiple sectors in a way that it creates more and more jobs for individuals.
So what is the way out for the youth now?
How will they look at constructive employment and a respectable source of living?
After all, it is not possible for everyone to be a doctor and start their own practice. In this context, one argument that has been floated quite often is simply that individuals need to look at self-sufficient modes of employment like starting their own venture.
So would you say that entrepreneurship an alternative to unemployment?
Well, I would say that it is a multi-layered question and cannot in any way be addressed by a simple yes or no reply.
This is because these are challenging times. We are in the midst of a completely new economic revolution…something that’s never been heard or done before.
Entrepreneurship as a career option is fast opening wide and big, and increasingly a large proportion of individuals are going that way, but we also know the relative amount of failure in the entrepreneurial activities is also significantly higher.
One clear reason for this is often the lack of suitable funding. Therefore while the business of entrepreneurship is buzzing, the jury is still out in terms of ascertaining whether it is an all round success story. So there are many sub-clauses attached to the key query that is entrepreneurship an alternative to unemployment.
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Entrepreneurship: Some Hard Facts
There are some key factors that you must remember.
These are relevant not just from the perspective that they highlight the complex construct of the issue but a big indicator of the present trend as seen in markets around the world and the global economy in general. While the fundamentals of entrepreneurship are being challenged, it also goes on to highlight the huge benefits of running something on your own and absolutely on your own terms.
1) The number of entrepreneurs has seen a steady increase since 2000 across the US. In fact, in the period between 2000-2011, there has been a whopping 30% rise and the corresponding income by them has seen a 37% rise.
2) In the same period, 2000-2012, the US labor force lost close to a million private salaried and waged employees while nearly 10 million entrepreneurs entered the field.
3) A little over 20% of Americans currently receive at least a part of their monthly/weekly income in the form of self employment opportunities generated by them.
4) What’s even more striking is the fact that between 2002-2012, close to a million workers lost their jobs while those enterprises which had a net strength less than 25 people, managed to gain over 1.5 million employees. It is surprising that most are with firms that have five or even lesser number of employees.
Well, all these facts go on to highlight a cardinal fact that entrepreneurship is fast catching up as a popular option that most people are now taking up to tackle the job pressure and problems of constantly confirming to the boss’ perspective and practically left with no avenue to thrash out their own initiatives.
Ease Of Funding Sources
One of the key reasons why entrepreneurship is catching up is the relative ease in looking and acquiring funds.
Starting with crowdfunding facilities to early stage venture capitalists to now even late-stage venture funds, the possibilities are immense for an individual who is interested in making a mark in the world.
The modern marketplace is well equipped to connect buyers and sellers and technology today proves to be the facilitator and broker connecting the interested parties to conduct negotiation and zero in on a deal.
Tools of Business
Another key advantage for individuals has been the ease of getting around and organizing business tools in the current perspective.
Organizing receipts, payment and manpower is a key challenge, and modern technology has facilitated a lot more effective and less time-consuming management facility. It allows entrepreneurs to help market themselves to the customers with a relative ease and take forward the product a lot easily across supply chains.
Technology today is also a great enabler in dealing with supply chain bottlenecks and smoothening out the overall delivery models. Entrepreneurs, therefore, can work a lot independently, effectively in a productive fashion.
Therefore, does it mean that we can conclude entrepreneurship an alternative to unemployment?
While that fact is still debatable, one aspect that can no doubt be ascertained with conviction is that entrepreneurship surely opens up multiple channels of efficiency for an interested individual. It helps them better organize their talent, pool in ideas and work towards a relative more effective mode of conducting business and create a source of livelihood.
Online platforms and the internet no doubt have made starting a business a lot easier and less painful than going through rounds of interviews in search of the right job in the already crunched job market.
Above all, the business models that are designed and developed based on the Internet and also the experiences of the other successful business models, have made it so easy for those who want to make a living through an easy to start and handle business. It has made it possible even to make a fortune for those who are more enthusiastic and ambitious:
- Following a Proven Business Plan Is the Success Key
- What Is the Best Business to Start with a Low Budget?
Not just that entrepreneurship also instills a relative sense of ownership and self confidence as the entrepreneur is taking forward their own individual goal and almost tackling the challenge of earning money and pursuing a career single handedly.
They learn to believe in themselves and take up risks when they are convinced about a concept. Therefore entrepreneurship scans well be an alternative to unemployment for candidates who are self motivated and looking towards avenues that help them to realize their dreams on their own terms without any hindrance whatsoever.
However, there is no need to emphasize more that choosing the right business plan which is easy and affordable to start, manage and promote, and at the same time scalable, is a must, otherwise entrepreneurship will be a bad experience: Scalability: Do Not Start a Business that Is Not Scalable