The greatest chance of success is in the age group of 60 and in the sectors of technology applied to agriculture, blockchain, robotics and big data
The pandemic has changed the economic patterns of society. While entrepreneurship a few years ago was something for young people setting up a ‘start-up’ or technology company, now the circumstances have led many over 40 to reinvent themselves and run their own businesses in order to continue working. This is apparent from a report by OBS Business School, which analyzes the situation of the entrepreneurial ecosystem and breaks down the associated stereotypes.
The most entrepreneurial economies are found in the Middle East and Africa, while the lowest levels are in Europe and North America. In Latin America and the Caribbean, the number of unicorns (companies worth more than $1,000 million) has multiplied by 18 since 2017. 60% of these ‘unicorn’ companies are located in Brazil, followed by Mexico, Chile, Argentina, Colombia and Uruguay.
The main reason for becoming an entrepreneur is to earn a living because work is scarce, but the problem is that 85% of these new businesses do not survive. The profile of entrepreneurs and the business model they propose have therefore changed. The average age of the entrepreneur, according to the report, is 42 years and in most cases, it is someone who is destined to start their own business after losing their job (72% of the cases). “For this he mainly resorts to his personal savings, perhaps for this reason companies are increasingly opened with a lower investment,” he says. And in terms of their previous employment status, the South Summit study found that more than 50% of new entrepreneurs worked in other companies and 30% had previously started a new company.
The greatest chance of success is in the age range of 60 and having good previous experience in the professional career increases the chance of success in the entrepreneurial project. Moreover, in Spain the majority of entrepreneurs have a university education (55%). “This data has not gone unnoticed, and there is evidence that certain important resources, such as human capital, accumulate with age,” said Marta Grañó, a professor at OBS and author of the report.
New technologies are the market niche where entrepreneurship guarantees greater success. The report shows that the fastest growing subsectors are Agtech (technology applied to the agricultural sector), which is up 128%, blockchain (121%), AMR (branch of mechanical engineering that designs robots), which is up 109% ; and artificial intelligence and big data (98%).
One of the negative consequences of the pandemic is the slowdown in female entrepreneurship. The activity rate in this area fell by one point to 5.2% in 2020, according to data from the Spanish Entrepreneurship Observatory. And in terms of education, the report confirms that there are more female entrepreneurs as the level of education rises, while in more complicated economic situations it is women who take the initiative to start a business.
But one of the branches of entrepreneurship where more women are starting their businesses is direct selling. It is a business model where sellers offer the product directly to consumers in a personalized way and outside of physical stores. Of the Association of Direct Selling Companies (AVD), President Gema Aznar explains that it is a “pioneering” sector and a “clear example of thousands of people entering the labor market”. “It is a business model based on direct and personal contact between suppliers and customers, which is maintained thanks to entrepreneurs with a commercial vocation who decide to embark on this adventure,” says Aznar.
The association calculates that in Spain there are more than 250,000 independent professionals who devote themselves full-time or part-time to this activity. “Direct selling is a lever for entrepreneurship and an economic engine,” explains the president of AVD, noting that the main benefits of these types of businesses are “the autonomy, flexibility and security that come from having a strong brand behind it” . Especially young people, women and students are involved. “With direct selling, they can develop an independent business, dedicate the time they spend on it and control their profits, all without high levels or investment risk,” Aznar says.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
