What if we invest in building a sustainable business that drives unemployment down? Imagine a society where only 1 out of 100 children survives past the age of 15. Such a scenario would spell the end of humanity’s long-term survival. Similarly, the current trend of short-lived businesses threatens economic growth. Startling statistics reveal that only 1% of companies endure beyond 15 years, with a mere 20% reaching the 5-year milestone.
This blog post explores the significance of sustaining businesses, addresses unemployment, and proposes a novel solution: recycling human capital through sustainable entrepreneurship.
The number of businesses that started and existed over some time determines economic growth. If the companies do not exist over a long period, there is no chance of economic prosperity. Why is our society not doing enough to ensure that more than 1% of businesses survive for over 15 Years? Then, what happens to the people who have been working in these businesses? Where do they go? You are right. They become unemployed, and their skills become dormant, a significant loss to the labor market.
My next concern was what we could do to end this menace and promote economic growth and prosperity. Then the thought of recycling human capital came into my mind.
Today we recycle nearly everything: papers, computers, water, fabric, steel, glass, wood, food; you name it. Yet, we fail to help businesses survive over a more extended period. Isn’t that strange? What if we use the same idea to create sustainable businesses to run for more extended periods so that the employee’s skills are not wasted but used over and over? Isn’t this the same as recycling?
Sustaining a business over a more extended period is not easy; however, with the right mentorship and training, we can have real entrepreneurs to make this dream a reality. To achieve this dream, we have to fix the reasons causing these businesses to fail.
How do we end unemployment in society?
Unemployment is one of the biggest problems in society today. The journey to end unemployment starts with ensuring we have companies that can last for over 15 years. Achieving that will automatically take care of the population that loses jobs once a business collapses.
Let’s have a look at the below assumption to be able to digest this better:
Assuming 20% of startups fail because the business ideas were not viable in the first place, we still have 80% of businesses going past the 15 years mark. Let’s now imagine that these businesses can exist and prosper past the end of the careers of their creators. In other words, 80% achieve longevity and are self-running beyond their creators.
Can you see the number of jobs each company will create over this period? Can you agree with me there are at least tens of jobs? If you multiply these by the number of small businesses in your area, you will notice that most of the population will be employed. These people stay employed as long as these businesses remain operational. It is then evident that if we promote the longevity of companies, we can easily eradicate unemployment.
Is eradicating unemployment a utopic dream?
I think you can agree with me that ending unemployment is achievable. A business’s main aim is to create profit while assuring the well-being of its employees, stakeholders, the environment, and the community. As long as the business makes a profit, the entrepreneur continues investing in it; therefore, it continues to exist. This means that he can take care of the employees who continue working for the business and therefore continue being employed.
With support, entrepreneurs can bring prosperity and end vices in society by opening opportunities for everyone.
By providing them with the required assistance and helping professionalize entrepreneurship, at least 80% of the businesses can survive longer to fulfill their goals. When these businesses achieve their goals, they create a tremendous societal impact that guarantees growth and prosperity.
Proper grooming can steer us away from the ordinary pseudo-entrepreneurs in the current market today, who cannot sustain businesses, to true entrepreneurs that I described in my book “The Secrets of the True Entrepreneur.” These true entrepreneurs are individuals that can be entrusted with the mission of creating dependable companies which, in the long run, can employ the whole population.
Having dependable and long-lasting businesses will ensure no human potential is lost, equating to recycling the human potential, the unlimited resource and solution provider on earth.
Let’s join our forces to create True Enterprises and True Entrepreneurs for the greater good.