With the fluctuations of the UK economy, companies have noticed a difference in the stability of their workforce and customers, putting strain on their business.
On the reverse of this, people have also struggled to find work, leaving many unemployed.
However, recognising the power of entrepreneurship and how this can instil a surge of job creation is crucial to bridging the unemployment gap.
Of course, creating a business that will require a workforce, stimulates employment growth. But it’s not as simple as that.
There are so many barriers that entrepreneurs face when setting up a business and entering a market, that being able to then hire staff and increase their employment levels is a feat to be acknowledged.
It has been found that SMEs and startups are in fact responsible for a large portion of job creation, accounting for up to 70% of employment worldwide, reviving local economies as a result and making a positive impact to various industries. The role these entrepreneurs have played in supporting communities shows how they can support on a smaller scale, too.
Below, Matthew Hayes shares his insights.
The rising unemployment rate
Between February and April 2024, the Office for National Statistics recorded the unemployment rate at 4.4% - the highest figure since September 2021.
With so many millions out of work, the question arises: how can we support the unemployed?
There are various reasons why people might not be working – and of course there are those who are purposefully out of work, such as students – but there remains a large proportion of people who are unemployed due to illness or caring responsibilities but would like a paid job if given the opportunity.
That’s where the introduction of new business plays a vital role in the economy, enhancing the availability of job opportunities for a variety of people.
Entrepreneurship fosters innovation
Entrepreneurs ensure that industries keep progressing and making advancements. Take technology, for example, and how continuous innovations have massively developed industries and opened up new opportunities.
Not only has this contributed to economic progress, but also to job creation. Where traditional job markets might face disruption due to technological developments and changing consumer behaviours, the entrepreneurs that have transformed industries by futureproofing them through embracing technological advancements have in turn created a surge of new job opportunities.
The development of the economy is closely linked to job creation, and where entrepreneurs can identify emerging needs and trends and continuously adapt, they are able to ensure job creation is a consistent element of their business model.
Markets face increased competition
When entrepreneurs enter a market, they are intensifying the competition for existing businesses. Put simply, this can have beneficial outcomes for consumers, with lower, more competitive prices and an improved product variety.
The effect on the market goes beyond this, though, and entrepreneurs have the power to awaken dormant markets with new innovations. By developing products or services, or improving existing ones, it pushes other businesses to adapt and develop their own offerings, stimulating further growth and opportunity for job creation.
With the power that entrepreneurs possess to transform different industries and increase job opportunities, we can see how they have the ability to make positive contributions to a volatile economy, both on a big and small scale.
To find out more about Champions, visit the website at https://championsukplc.com/
About Champions (UK) plc
Champions delivers the entire solution, from diagnosis to delivery, implemented on a day-to-day basis, with the benefits tangibly demonstrated and reported.
As an entrepreneurial organisation working with similarly minded business leaders, Champions (UK) plc is consistently innovating to ensure its clients receive the very latest products and services, from AI implementation to multi-channel sales and marketing solutions, the latest people development training to market-leading investment & deal services.
Champions’ overarching message is “we are entrepreneurs for entrepreneurs”, helping businesses manage evolution in order to deliver sustainable growth.
Utilising results-driven services, the Champions team delivers simplicity from complexity, turning the intangible into highly tangible business results that drive capital value.
Champions is proud to have supported hundreds of business owners to realise their business’ potential, from fast growth to rapid scale up business through to institutional leaders in their industries.
