8/30/08

Unemployment - who´s to blame?

This morning I got to read that the unemployment rate in Colombia in July 2008 was 12.1 %, growing by 0.9 % compared with last year´s rate for the same month. Working at Endeavor and having "# of employees hired" as on of the key indicators of the companies we support, the growing figure can´t stop concerning me ...


Being a follower of Robert Kiyosaki anf finding quite logical and amazing his Cash Flow Quadrant (see it below) I can´t help reflecting randomly who to blame for a growing unemployment rate, tas least in Colombia. According to Kiyosaki´s quadrant the actors in the right side (business owners aka. entrepreneurs - and investors) are the ones that generate employment, and the actors in the left side (employees and partly self-employed people) are the ones that get hired/get advantage of the opportunities created by the other two. Well I guess it´s clear for us that he´s right.



The Cashflow quadrant

If we take the explanation of his quadrant literally, business owners and investors are the ones to blame for a growing unemployment - daahh! But, is it fair to only analyze the issue from this perspective? Definitively no.

Being currently an employee, hearing unemployment facts makes me really look for ways I can contribute, and indeed there are many and they´re all about how you can migrate through the quadrant.

1. From Employee to investor: For me the easiest (and probably the kess risky one) shift that one can make is becoming an investor. Ok, don´t get me wrong, at the beginning sure we are not talking of huge investments, probable we do not have the money for that, but investments into companies/smaller businesses are rather a matter of vision an discipline, rather than a matter of money. There is market for everything. By investing in businesses and causes, you are contributing to the growth and stabilization of those, and therefore into their ability to hire more. The mentality of many Colombian employees that fortunately have a surplus out of their personal finances, is to have it in a bank (the "paradigm" of saving) or what it even worse, spending it like hell in unnecessary things.

2. From Employee to entrepreneur:
This option is not as simple as the previous one, specially because I am a believer that there are certain characteristics that are proper of entrepreneurs that even if you are the best of the employees you will never acquire. So, you might have the motivation, but not what it takes. And one should be very self-aware and be conscious of that. STILL, I know people that currently have a job, but would be amazing entrepreneurs.

And if non of the past shifts is for you, well, the least you can do is being a n awesome, extraordinary employee. If you are not part of the solution, at least don´t be part of the problem! Let´s face it, entrepreneurs can´t survive without outstanding employees, it´s just not possible. Even if they create the jobs, is the workforce who really execute the business model. But mediocre performance as employees only leads to mediocre organizations, which are the ones mandated to get our of the market, and among many other consequences, generate tour well known friend called unemployment.



Last but not least, walking aside from what current employees could do, the role of the unemployed ones is the one that needs to change. What about the shift "unemployed to to self employed or to entrepreneur?". Many entrepreneurs have been born under this situation, by need, and the impact of what they´ve done for themselves and for their societies is amazing. Actually when I think back in some of the most inspiring cases of entrepreneurs I know, they have been entrepreneurs by need. If just a 20 % of the unemployed ones would dare to endeavor an idea, a project, a company, I bet this unemployment rate I referred to at the beginning would look completely different.




2 comments:

Karla.Ticona said...

Very nice post Oriana.

I just got "Antes de renunciar a tu empleo, 10 lecciones que todo emprendedor debe saber para construir un negocio multimilloario" from Robert Kiyosaki.

I believe everybody is got a choice to be in one or more than one section of the quadrant. But definitely, it is important to remark the choice everybody is got to face their (our) current situation.

Regards,
KT

Priyanka said...

Nice post and will look forward for future updates.

Thanks
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