With a struggling economy, unemployment at an all-time high and the cost of living on the increase, you might be very reluctant to start your own business. Here are five reasons why it might not be such a bad idea:
Peace of mind for your job future
In a country where more than 25% of South Africans are unemployed, the ability to create employment for oneself has never been more important than now. According to Lullu Krugel, chief economist at KPMG, close to 70% of South Africans are employed in small or medium enterprises. “Globally, large corporates are experiencing cost pressures, leading to a situation where employees cannot be looking at these businesses as the only solution,” says Krugel.
You get to be your own boss
In a time where most employees are under the tremendous pressure of long working hours, never-ending deadlines, and hours in stress-inducing traffic every day, being your own boss is one of the greatest rewards for any entrepreneur.
An economy of great opportunity
Don’t be put off by the challenges currently experienced in the South African economy. According to Krugel, a country going through significant changes also creates opportunity. “Access to technology, a growing middle class and growing connectivity with the rest of the world, all create business opportunities for South Africans.”
You are one of a select few
According to the latest available Global Entrepreneurship Monitor Report, only 25% of young South Africans believe that they have the necessary skills to start a business, significantly lower than in other countries. If you have the required funding in place and most importantly, the necessary skills to make a small business successful, you are already two steps ahead of most other South Africans still brooding on their moneymaker-idea.
It does not need to be a “risk all” endeavor
Before you quit your job and withdraw your life savings to use as startup capital, know that starting a business does not have to mean giving up all sense of financial security. According to Jason Heinemeier Hansson, co-author of Rework, the notion that entrepreneurs have to risk everything in order to be successful is a myth. “If you can [start a business] self-funded, you can do it on your schedule, on your own time and with you being in control of the entire process the entire way.”