Starts-Ups Create Jobs
The nature of jobs has been changed with the changing in the demands and
technology. The term start-up might be defined in a number of ways and in a different context but the term is also most importantly used for creating job opportunities by means of the newly registered firms. There always has been a debate on do the start-ups really create jobs and the question is much complicated to answer.
Start-ups are often considered as the ultimate catalyst for new jobs and as an employment saviour and a promise of economic growth. One main reason behind considering the start-ups creating job opportunities as a challenge is the nature of each job that is, for a particular job, different since not all the jobs are created equal. Some of the jobs differ in the amount that is paid to the workers and the other the nature of the work that is to be performed (Isenberg, 2016).
It has been observed that some of the firms that have started their businesses, even after few years of the start-up, were not capable enough to generate the revenue and thus making an increase in the employees’ payables. It has also been argued that the start-ups might have created the job opportunities but most of the jobs that are created at the time of start-up are not only for the low skilled service but are also offered with minimum wages. A lot of anomalies have also been displayed through the economic research. The firms do not require entrepreneurs at the start-ups rather they require experienced professionals thus the studies have also revealed the start-ups as one of the biggest job shedders. The newly started firms might have created new job opportunities but the fact cannot be denied that it might not always be possible that the increase in the number of firms will also result in increasing the number of required jobs (Dvorkin and Gascon, 2017).
It has further been observed, revealed and discussed by the researchers that in comparison to the job opportunities provided by the already existed firms, the percentage of the job opportunities provided by the start-ups is relatively low and at the same time the cost for job creation for the start-up is more. It has further been argued that millions of jobs have been created by the start-ups for so long but at the same time, it has also been observed that they do not last. Although the start-ups might have made a very large contribution to the net job creation but they account for just a small percentage of the total employment. The unemployment rate, in most of the countries, has increased so much that it has become necessary to create employment ventures but at the same time it is also necessary to provide the people with the similar extended facilities that they might be expecting from an already existed firm (Forrest, 2015).
Start-ups create new tools for getting the work done to providing a new direction for doing things thus, creating jobs in terms of existing companies that have been requiring a new employee to implement the changes. Start-ups often result in changing the ways the people might think and by getting the new ways the work and the things can be done. The start-ups might be creating new job opportunities but at the same time are also making amendments in a number of processes, the amendments can be good but they can also act as the job destroyers (Dvorkin and Gascon, 2017).
References
Dvorkin, M., Gascon, C., (2017). Startups Create Many Jobs, but They Often Don't Last.
Federal Reserve Bank of St. Louis
Forrest, C., (2015). Are startups creating jobs? It's complicated. TechRepublic
Isenberg, D., (2016). Do Startups Really Create Lots of Good Jobs? Harvard Business Review.
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