ENTREPRENEURSHIP: 5 THINGS YOUNG PEOPLE SHOULD KNOW

High school is a good time for you to prepare for the reality that the concept of a job, i.e., earning a living, is dramatically changing. Here are some key things you should know as a young person to prepare you for the dramatically changing world of earning a living:

 

Business is redefining employment—facilitated by new technology

Earning a Living is Dramatically Changing

 

 

1. GLOBAL COMPETITION IS DRIVING BUSINESS TO BE EVER MORE PRODUCTIVE TO SURVIVE.
In this drive, business is redefining employment—facilitated by new technology, automation, off-shoring, the Internet, and recently, with particularly dramatic advances in information technology and artificial intelligence. In the spa of just several decades typically earning a living has gone from working for a few employers over a lifetime and receiving retirement income from one or two to having many employers over a working lifetime with no meaningful accumulation of employer-provided retirement benefits. As early as 2008, the US Bureau of Labor estimated that students joining the work force would average 10-14 employments by the age of 38.

 

 

2. CONTINUOUS DISRUPTION IS INEVITABLE.
Consider driverless vehicles, which are on the horizon in the next few decades. How many now making a living driving will be displaced? With the potential of 24/7 availability and utilization of vehicles, will the number of vehicles manufactured and the supporting industries such as tires, accessories, auto insurance, etc. shrink significantly? How many jobs will be lost as a result?

 

Global outsourcing has become commonplace and is growing,

Prepare to be part of a “Company-of-one.”

 

3. PREPARE TO BE PART OF “A COMPANY-OF-ONE.”
The US Census Bureau maintains statistics on “Non-Employer Firms,” which they define as self-employed individuals operating very small unincorporated businesses, which may or may not be the owner’s principal source of income. The census uses information from the IRS to track the number of such firms as well as their revenues. The number of non-employer firms has risen sharply since 2007, before the global financial crisis, and has reached 21.7 million, up nearly 41% from a decade before. Since a number of the self-employed may not be reporting revenues to the IRS, the actual number could be much greater than 21.7 million. Indeed, several years ago the Wall Street Journal estimated the number of self employed in the US to be approximately 40 million. If this estimate is accurate, essentially one quarter of US workers are now self-employed and could be considered entrepreneurs. This trend to greater self-employment can already be recognized in knowledge workers working as independent contractors in consulting, IT, engineering, accounting, law specialties, etc. Outsourcing reinforces this trend, and firms are finding that hiring independent expertise as needed is less expensive than hiring an in-house staff, and helps them tap a greater level of expertise.

 

4. UNRELENTING TRENDS WILL CONTINUE TO REDUCE JOBS IN DEVELOPED ECONOMIES.
Global outsourcing has become commonplace and is growing, even down to contracting individuals with highly specific skills on a project-by-project basis. Technology will have an even more profound effect on jobs of the future, replacing human endeavour regardless of geography. We have already seen that automation and robotics are replacing humans in manufacturing, distribution, and other fields, actually resulting in a higher level of quality and reliability. And now we are seeing information technology and artificial intelligence replacing knowledge workers with college degrees.

 

5. LEARN TO BE ENTREPRENEURIAL
Along with understanding the above realities, having the confidence to become entrepreneurial will help students be more successful in this future workplace. They’ll be far better equipped to work for themselves or start a company that might employ others. Students need a basic understanding of entrepreneurship and the personal skills they’ll need to be self-employed. This understanding goes beyond teaching them business basics and skills; it also means helping them gain the right mind set.

 

From: Entrepreneurship Education Must Start Before College. By Roy Carriker. Entrepreneur & Innovation Exchange Published online at EIX.org on October 04 2017 DOI: 10.17919/X97T0X

 

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Categories: Entrepreneurship and Small Business

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