How does a New Business Help To Generate Employment?

. 7 min read
How does a New Business Help To Generate Employment?

Almost 35% of the country’s population consists of youth. This makes it all the more necessary to deal with the growing issue of unemployment. The rate of unemployment is rising every day in India. Millions of young, educated, and qualified people are desperately looking for jobs in various streams. The problem is becoming more complex with the boom in population growth. Hence, new businesses can play a vital role in generating employment for the country’s youth.

Every new business has tremendous potential. If businesses start cropping up in every nook and corner of the country, they will provide jobs to millions of talented and qualified people who need them.

Starting a Business Develops Entrepreneurial Skills

When you start your own business, you get the opportunity to develop several invaluable skills. Here are some reasons why you should start something of your own:

  • You become self-reliant: You learn to make your own decisions and don’t depend on others for your income.
  • You become more responsible- It will take you a long way in life. When you learn to decide what is right and wrong for you without taking instructions from someone, you will control what you do in life.
  • You become financially strong - You can also expand your business gradually when you are ready to take more responsibilities. It will also make your profits soar to great heights.

Every New Business Generates Employment Opportunities For Deserving People

  • When you start a new business, you are creating employment opportunities for those who need it. A business, however small, has several tasks and responsibilities. As an entrepreneur, it might not be possible for you to take care of everything by yourself—right from organising the finances, procuring the materials, marketing your goods and services to finally making that super important first sale. Isn’t that a huge task? It is not feasible to do everything on your own.
  • Even when you are first setting up your startup, there are many things to be done. You will have to hire someone to assist you in your work. As your business grows and expands, you will require the services of more people. This way, many people will get jobs, thereby reducing the unemployment problem up to an extent.
  • Moreover, it will be easier for people to secure jobs in startups and small companies. Giant firms have their own set of complex norms that might be intimidating for freshers. However, when you set up a new company, people in your circle with the relevant skills can approach you to become a part of your startup, making it easier to get jobs.
  • According to a Forbes report, small businesses play a greater role in creating employment opportunities than giant firms and corporations. You cannot agree more with this. Giant corporations already have their set norms and strategies. They have a pool of employees working for them, and the requirement for new employees is minimum. Even when there is a vacancy, the selection process is rigorous, and few can make it through despite having the desired qualities.
  • On the other hand, if small businesses crop up every day, they will always require new employees to expand their team. So, freshers will get a golden opportunity to find employment opportunities matching their skills, interests, and qualifications.
  • Moreover, when you join a new company, you become associated with it right from its foundation. You get time to adjust since there is no established work culture. Gradually, when the company starts expanding, you become indispensable for your employer since you worked for the company right from its cradle. So the chances of losing the job are lower. However, in a big firm, there is the threat of losing your job at any moment.

Startups Provide Work Opportunities to Freelancers

When you start a new business, it is quite natural that you will not require an individual’s regular services. Here is what you can do instead:

  • Hire freelance professionals who will work for you when you need their services, and the best thing is you pay them only for the amount of work done.
  • Forget the hassle of allowances and fringe benefits. Pay them only when you need their services. This not only saves your money in the initial stages of your business but also provides earning opportunities for skilled and talented people working as freelancers.
  • Encourage the culture of self-employment and make people independent. People will become financially independent even without a regular, full-time job.
  • What is more, they will become their boss without taking commands and instructions from their employers in the office.
  • Give them a lot of flexibility to the professionals as many services can be performed virtually. So, the person can work from anywhere in the world without the hassle of travelling to the workplace daily.

Summing up

New businesses are the only solution to the problem of rising unemployment. Startups are the backbone of our economy. They develop the required entrepreneurial skills in the youth and create numerous employment opportunities for deserving and needy candidates. With the country’s population increasing at an alarming rate, it is becoming more difficult to secure a stable job with every passing day. In such a situation, building startups is the best option to empower youth.

At OkCredit, we have helped several young and aspiring entrepreneurs to build their businesses and take them to great heights. We provide all kinds of advice and support to budding and talented professionals who are willing to start their dream business. Right from financing your startup to marketing your products and services, we make sure that everything is done right. So without further ado, start building your own business to contribute towards solving the problem of unemployment.

You must have a lot of questions in mind regarding starting your dream business. Go through these FAQs to clear all your doubts.

Also read:

1) How Lockdown Has Impacted Employment in India?
2) Are The Online Work-From-Home Jobs Genuine?
3) Employment Opportunities With Make In India Campaign.
4) How to Keep Yourself Motivated as a Business person?

FAQs

Q. How to find the right employees?

Ans. You need to make sure that your HR is experienced in hiring candidates. Apart from checking their technical knowledge, you also need to check their professional attitude and team cooperation, which helps build a team.

Q. Do I need an employment contract?

Ans. Yes, having an employment contract is extremely helpful as it can save the company from any false charges placed by an employee in case of any dispute or conflict.

Q. How to find candidates?

Ans. You can find the right candidates on Naukri, Indeed and similar job portals. You can also find suitable candidates on LinkedIn.

Q. As a startup, should I prefer full-time or freelancers?

Ans. As a startup, you need to first estimate financial budgets for yourself and based on the requirement to fulfil the job, decide if you need a full-time employee or freelancer would help.

Q. What are the questions to ask before hiring an employee?

Ans. You can ask them about their education qualification, professional experience, strength and weakness. These will help you understand not just their passion for your work but also if they have the potential to do so.

Q. Should I invest in training my team?

Ans. Training the team is crucial for their performance, and you can do it yourself or get an expert to do it. But, there is plenty of content on the internet today both in the form of videos and text. It helps in team training and development. Investment in the form of money is equally important as investment in the form of time.

Q. How to know which task to delegate?

Ans. The tasks you think can be handled by others swiftly and don’t require your attention must be outsourced. This helps you as a founder or owner of a startup to dedicate the time that requires your attention.