The Future: A New Generation Of Human Capital
The Future: A New Generation of Human Capital
Dr. Marisela Jiménez, PMI Contributor
If you are thinking about starting a business because you no longer want to work for an employer and deal with the demands of the daily grind, think again. Consider this question, “Are you sure you have what it takes to be a business owner?” In my advice to solopreneurs, wannabe entrepreneurs, and business owners, I tell them to consider the most fundamental business principle, money. According to data from the Bureau of Labor Statistics, about 20% of startup businesses fail in their first year, and about 50% fail by their fifth year. Finally, 70% of small business owners fail in their 10th year.
This rate of failure is preventable, but most people who endeavor with their business idea often follow traditional models of marketing by joining a Chamber of Commerce because that is the place to get help and referrals. While membership with a local chamber may prove to be useful, let us be clear that unless you understand the complexities of starting and managing a business, you will not succeed. The Small Business Administration reported that Over 627,000 new businesses open each year and at the same time, about 595,000 businesses close each year. The average 30 percent of business owners who succeed are the ones that built a comprehensive business plan, raised healthy levels of cash flow, and acquired the relevant human capital to strategically manage the needs and challenges of the business.
Therefore, future market demands will reject the past approaches of starting and managing a business. A new generation of human capital is expected to think and act strategically, to produce tangible value, and to take ownership for the success of the business. Whether you decide to remain with your current employer, find another one, or start your own company, be prepared to use new technologies, engage in collective intelligence, and see the world with a culturally competent new set of lenses.
In the words of Charles Darwin, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” Moving forward, take time to reflect on where you are and where do you want to go from here. Regardless of your decision, ensure it is rational and future-driven. Hence, employers are already reshaping their recruitment model, and many companies have already implemented best practices to select the most adaptable talent to lead their organization.
 Source: Bureau of Labor Statistics. https://www.bls.gov/bdm/us_age_naics_00_table7.txt
 Source: SBA. https://www.sba.gov/