Imagine a society where only 1 out of 100 kids survives past the age of 15. What would that mean for the long-term survival of humanity? I’m sure you agree that there will be no society to talk about in the long run. If we use the same logic in businesses, there will be no economic growth if the current trend in creating and sustaining new businesses continues. Statistics show that only 1 out of 100 companies survive for 15 years or more, and only 20% make it to the 5-year mark, as shown by the graph below.
The number of businesses started and existing over some time determines economic growth. If the companies do not exist over a long period, there is no chance of economic prosperity. My worry is, why is our society not doing enough to ensure that we have more than 1% of the businesses surviving 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 employees’ 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 that can 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 that 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. I believe a business’s main aim is to create profit while assuring the well-being of its employees, stakeholders, the environment, and the community at large. As long as the business makes a profit, the entrepreneur continues investing in it; therefore, it continues existing. This means that he can take care of the employees who continue working for the business and therefore continue being employed.
With support, I believe 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, which equates to recycling the human potential, which is the unlimited resource and solution provider on earth.
Let’s join our forces to create True Enterprises and True Entrepreneurs for the greater good.