Poor People Are Starting Lots of New Businesses... It's Destroying The Economy
The number of new small businesses is growing quickly, with many people starting businesses out of necessity rather than opportunity. This rise is often due to the growth of the gig economy, where people register as businesses for work like Uber Eats, but these 'businesses' often don't create jobs or invest in the economy. This trend, along with an increase in independent contractors who often have employee-like conditions without benefits, suggests that the job market is not as strong as the high number of new business applications might suggest. This situation can be problematic for the economy and is often overlooked by governments because positive job and business creation headlines are good for public perception.
Key Vocabulary
Obstacles or difficulties that must be overcome.
Examples:
- The athlete trained rigorously to clear all the hurdles in the race.
- Securing a patent for the new invention proved to be one of the biggest hurdles for the startup.
- Overcoming the language barrier was the first hurdle I faced when I moved to a new country.
Having a mutual relationship or connection, in which one thing affects or depends on another.
Examples:
- Studies have shown that higher education levels are often correlated with higher earning potential.
- The increase in ice cream sales is directly correlated with warmer weather.
- The company observed that customer satisfaction was strongly correlated with product quality.
The activity of setting up a business or businesses, taking on financial risks in the hope of profit.
Examples:
- Her passion for innovation led her to pursue entrepreneurship right after college.
- The government launched a new program to foster entrepreneurship among young people.
- Successful entrepreneurship requires a blend of creativity, resilience, and strategic thinking.
Changed the meaning or scope of something; given a new or different definition to.
Examples:
- The advent of the internet has redefined how people communicate and access information.
- Her groundbreaking research redefined the understanding of quantum physics.
- The new CEO's vision completely redefined the company's mission and objectives.
Working or operating for the whole of the working week rather than part of it.
Examples:
- After years of part-time work, she finally secured a fulltime position with benefits.
- He decided to dedicate himself fulltime to his passion project.
- The university offers both fulltime and part-time study options for its master's programs.
Not having a sufficient number of representatives or participants.
Examples:
- The tech industry has been actively working to increase the number of women in leadership roles, as they are often underrepresented.
- Students from rural areas are often underrepresented in top-tier universities.
- The survey revealed that certain demographic groups were significantly underrepresented in the sample.
From a distance; via the internet or other telecommunications, rather than in person.
Examples:
- Many companies shifted to allowing employees to work remotely during the global health crisis.
- She manages her team remotely, using video conferencing tools to stay connected.
- The IT support team can often resolve technical issues remotely without needing to visit the office.
Given the authority or power to do something; made stronger and more confident, especially in controlling their life and claiming their rights.
Examples:
- The new policy empowered employees to make decisions independently, leading to increased efficiency.
- Education can empower individuals to pursue their dreams and overcome adversity.
- The coach empowered the team to take ownership of their training regimen.
No longer current or useful; old-fashioned.
Examples:
- The company decided to replace its outdated computer systems with new, more efficient technology.
- Many people still use outdated communication methods when more effective options are available.
- The fashion trend from the 1980s now appears quite outdated.
Persons who buy goods from producers and sell them to retailers or consumers; intermediaries in a transaction or process.
Examples:
- The farmer decided to sell his produce directly to consumers, cutting out the middlemen.
- In the digital age, many online platforms have eliminated the need for traditional middlemen.
- The artist preferred to deal directly with clients rather than going through art gallery middlemen.
In a way that is so delicate or precise as to be difficult to analyze or describe; in a quiet or understated manner.
Examples:
- The artist subtly blended the colors to create a seamless transition in the painting.
- She subtly hinted at her dissatisfaction without directly complaining.
- The changes in the company's policy were implemented subtly, so many employees didn't notice immediately.
A single professional engagement, especially one of short duration; often refers to temporary or freelance work.
Examples:
- He picked up a few extra gigs on the weekends to earn some additional income.
- The musician was excited about his first paid gig at the local cafe.
- Many students are taking on gig work to support themselves through college.
To obtain or collect something with difficulty or by searching various sources.
Examples:
- He had to scrape together enough money to pay for the unexpected repairs.
- The researcher had to scrape data from numerous online archives for his project.
- She managed to scrape by on a very tight budget for several months.
Changed the form or nature of; molded into a different shape.
Examples:
- Technological advancements have completely reshaped the entertainment industry.
- The new urban development plan has reshaped the city's skyline.
- His experience abroad reshaped his perspective on cultural differences.
The chief support or main strength of something.
Examples:
- Small businesses are often considered the backbone of the local economy.
- The dedicated volunteers are the backbone of the community's charitable efforts.
- Reliable infrastructure is the backbone of a thriving metropolitan area.
Prospering; flourishing; growing or developing well.
Examples:
- The new restaurant quickly became a thriving business in the neighborhood.
- Despite the challenges, the startup is thriving and expanding its operations.
- The garden is thriving with a variety of colorful plants and flowers.
Made to seem more palatable or pleasant than it actually is; presented in an overly optimistic or misleading way.
Examples:
- The manager decided not to sugarcoat the difficult news during the team meeting.
- The documentary refused to sugarcoat the harsh realities of poverty.
- Parents sometimes sugarcoat the truth to protect their children from unpleasant realities.
Makes an organization or system more efficient and effective by making it simpler or more rational.
Examples:
- The new software streamlines the entire accounting process, saving hours of manual work.
- Implementing a clear communication strategy streamlines decision-making within the team.
- The company's goal is to streamline its supply chain to reduce costs and improve delivery times.
The whole or complete amount of something.
Examples:
- The jury listened to the testimony in its entirety before making a decision.
- He decided to read the book in its entirety over the weekend.
- The project budget covered the entirety of the development costs.
Relating to or concerned with the interaction of social and economic factors.
Examples:
- The study examined the socioeconomic impact of the new factory on the local community.
- Access to quality education often depends on a family's socioeconomic status.
- Government policies aim to address socioeconomic disparities across different regions.