Why is the entrepreneur the job of the future and what this means to education
Why is an entrepreneur the job of the future and what this means to education – because there’s nothing else left to do, but read more.
It’s got a profound effect on our education.
Entrepreneuship is the one of the most profound tool to personal growth
Everyone should build a little entrepreneurial spirit within
It’s official. Secretary-General of Chinese Communistic party Xi Jinping says that Entrepreneurship is the main focal point of the Chinese 20 – year development plan. There’s still a lot of CPP involved (go figure), but nevertheless, entrepreneurship is going to play a crucial role in the further development of Chinese society.
In this article, I want to tell you why is an entrepreneur the job of the future and what this means to education as such. I am going to elaborate on the profound ideas of Professor Milan Zeleny – an awesome economist that is still not known in the world as he should.
It’s the economy, stupid or four things that humans do
There’s a myriad of human activities, but basically, all of them can be categorized into – Agriculture – Industry – Services – Government. All of these sectors have had their high/low lights and have been a driving force of the national economies. Agriculture once was the biggest sector that employed most of the workforce until the industrial revolution in the 19th century. Today it accounts for only about half a percent of the workforce in the U.S. It’s a very productive sector though. And productivity is the driving force of the capitalistic economy.
Most advanced economies have reached the final stages of the sequence. Milan Zeleny states; The four sectors represent the end of an era: there is no fifth sector. The advanced economies are not just undergoing cyclical crises but experiencing a secular and irreversible transformation to the new regime (or new normal) which qualitatively changes the way of the economic life of mankind as well as the ways of production and consumption.
Governments cannot substitute the roles of businesses in the economy. And when the old ways of growth will be depleted, you know, printing money and creating more debt won’t work forever.
When the old ways of growth will be depleted, you know, printing money and creating more debt won’t work forever.
But, what it got to do with Why is an entrepreneur the job of the future and what this means to education?
Is your job in danger?
Let’s take the US economy as a role model. It goes through economic cycles. Sometimes millions of jobs are created in the economy and sometimes millions are lost. Then there are interests of many actors in the economy with a big say – in America especially big corporate animals and public institutions, namely Fed and Government.
I do think that the Fed has got a bigger say in the economy than the Government. Every year they adhere to their interest rate policy – they move with interest rates. Interest rates are the natural measure of the value of money. When interest rates lose their signaling capability, when they are artificially kept low, economic and investment decision making loses its key benchmark and goes haywire, says Professor Zeleny.
Incompetent, hazarding policies of Central banks have been a source of chaos in the economy and one of the reasons why private investments were being kept low and companies are sitting on billions of dollars, not investing them. As mentioned above Governments can’t substitute the roles of businesses without heavily indebting themselves.
Yes, I know Trump rants about billions of dollars of public investments, but at the same time, he proposes massive tax cuts and you know a lot of Trump bullshit.
So, you can’t pretty much rely on Fed or Government in the economy. You come and you go, job-wise.
Second thing is that all four sectors are subject to accelerated productivity growth rates, and thus declining employment share of the workforce. Automation, artificial intelligence – I am sure you heard about that. This all can drastically cut our jobs, yet make a GDP growth for years to come. Productivity will go higher, but employment will rather decline.
You cannot rely on politicians. It’d be a miracle if someone competent got there who knew what he was doing. Because he or she would have to tell things that most of the electorate does not want to hear.
Most of the people would not like to hear that there are no more job securities or that stuff that you learned in college is obsolete and etc.
Globalization and Deglobalization
There are a lot of studies on Globalization ranging from authors like Joseph Stiglitz to Randy Wolf. I guess they left some positive impression on me on Globalization as a phenomenon. When I look at it from a first principle, not necessarily by asking questions, but by seeing the essence – it’s the freaking standardization of the World. Thank God, for the diversity that the World can’t be fully standardized, because of geographical, societal, cultural differences that need to be taken into consideration.
No doubt, that Globalization has reduced poverty for millions, just think of China again. You can compare South Korea or North Korea, who is Globalization leaving better off?
Globalization will continue, but it’s not a win-win concept. In the good times, we enjoy the surplus, steady growth of the world economy, gains in international trade, productivity and employment. In the bad times heavily indebted developed countries are learning to save again, hindering every new investment, which then causes export-oriented countries like countries of East Asia to stop their plants.
The export-oriented model was recently put into reconciliation in China, which should lead to more incentives towards growth based on domestic entrepreneurship and demand.
Because there is no new productive sector to emerge, the market system seeks to reinstate its new balance through new modes of doing business.
The new phenomenon of 21st Century will be Deglobalization.
Deglobalization means focusing on internal markets and relocalization. And outsourcing is followed by “backsourcing”, returning activities back to the countries and locations of their origin.
This is the root. This is the chance. This is why is an entrepreneur the job of the future. Think globally, act locally will still have its means. You still can make it as a world entrepreneur, but the global information will have to be reinterpreted in the context of local knowledge – solving specific local conditions and context.
Information can be downloaded from the entire world; knowledge is produced through local action. Every action takes place in a given context of time, place and culture.
Professor Milan Zeleny states:
We are entering the era of global information and local knowledge (we download cookbooks of the entire world, but the art of cooking emerges through local action only). We know what to do and how. To know about is not the same as to know-how; to know why complements knowledge with wisdom. Information flies around the world at the speed of light, but products and the inventories are transported and shipped around slowly and dearly. It is now necessary to produce locally, at the closest proximity to the customer (even by the customer itself – self-production and self-service).
With this transformation, an entirely new vocabulary is emerging in economics: in addition to deglobalization and relocalization, we also encounter glocalization (adjustment of products to local culture) and local community restoration (regional self-government and direct democracy).
Local services, local production, and local agriculture, based on distributed energy generation, additive manufacturing, and vertical farming, are enhancing individual, community and regional autonomy through self-service, disintermediation and mass customization.
Entrepreneurs of communities
Everybody wants to build a technology company that is usually associated with a fancy word “startup”. It’d be a blessing to connect millions of people online, sell it to the bigger company for $100 million or for a billion and chill. But the truth is that 9 of 10 startups fail and I sometimes doubt that the world needs new Quora, Twitter, something social or what gives people better access to present their shallow surfaces like Instagram.
I would like to see an Entrepreneur instead that is changing, not maybe the world, but their local communities for the better. The world of the future will be just that – localized connected communities. They won’t be isolated from global information. No way, thanks to the internet they will be more connected than ever. But they will write they own local (global) story. They change global information into local action.
They change global information into local action
So, why is the entrepreneur the job of the future and what this means to education?
Because there is so much to do to help local communities and the stories of the places where you live!
The information will be there online, 24 7 always accessible. Thanks to broadband internet it will be very easy to access this information.
If I wanted to start a hemp production and create a product out of seeds and fiber, there’s a bunch of eBooks, materials, and videos I can get it. Thanks to Skype I can talk to almost every farmer in South Australia even though I am located in Central Europe. I could learn every information there is on hemp planting. Yet, there would be one more thing missing – to plow the field and actually planting the hemp, just doing it! And then of course finding local functions of this successful Australian hemp production story. What would I do with all that fiber and seeds? What products would help my community the best?
Finally, to education…
Plan your education accordingly
So, we discussed one indispensable, unignorable fact that the World of the future won’t be just Globalization, but also re-localization. We understand that information will be more and more accessible and downloadable, but the information is not knowledge. Valuable adults are knowledgeable adults. They can transmute the global information into the local initiative, a business if you will.
So, under this circumstance, if your college is not doing something similar, there’s just no point going there. If the college were entrepreneurial, it would be doing a business, not just writing papers about it, then probably it would be worth to go to college.
Yes, you need some formal education, but that can be achieved in a very good high school also.
Courses of top universities are now accessible free on the internet, and if they are not, they are accessible through education platforms like Coursera.
It’s out there, you just need to pick it. Assignments are accessible to you, all you do not get is the degree or a certificate, which in the end no one cares about if you make people money or enhance their lives.
What is still a bit missing is the system of mentoring or tutoring. They are still not as accessible as they should. I might be able to find hundreds of mentors in everything I do. I should never walk alone on my journeys, whether I want to build an app or prepare my longevity plan.
In the future, with all accessible global information, the higher value in learning is the organization of information and mentoring.
Information needs to be piled, structured, categorized according to the scope of your project learning plan. It needs to be evaluated and used in practice. From there you gather learning experience, true knowledge. That’s how true learning is done.
I set up a course for you that can give you a good intro to this new learning. Download it for free, from this link or click the picture.