(Recent dialogues in economics and implications for young people)
The following article has been written by Dr Tolu Olarewaju, who is a lecturer in business economics at Staffordshire University Business School
Technology has changed our jobs market fabulously since it transformed the production landscape during the Industrial Revolution, but even more so in the past three decades. Like the 16th century, many jobs that were once considered crucial are now obsolete, and new job descriptions are being created in the labour market even as many forms of automation are presently being integrated into the production process. One does not have to go far to see how technology has changed our lives in terms of communication, transportation, work, and leisure. You being able to read this article has been greatly enhanced by technology and I as the writer have had to have some basic skills in technology to be able to deliver this article to you.
As an economist, there used to be a time when my profession worried about what humankind would do when we ran out of oil, but recent technological advancements have once again rendered that discussion archaic. There also used to be a time when the factors of production were firmly believed to be land, labour, capital, and entrepreneurship, but some economists will argue that there is a need to include one additional factor of production in the modern era — you guessed it — technology.
So what does this mean for young people as they decide their future? Should we be scared of this trend? How far-reaching will advancements in technology be? Humankind has been very fortunate to have been able to grasp the benefits of technology, and though we have used it to live longer, healthier lives, explore space and other planetary objects, and open great doors for the future, we have also made many mistakes along the way. Young people need to be wary of this and know that they have to be the ones to decide how we harness this power and what we use it for.
My area of focus in economic research right now is entrepreneurship, and I became interested in it particularly because entrepreneurs are the ones who combine all the other factors of production to actually benefit humankind. Without the entrepreneur, other factors of production will be idle. Entrepreneurs, however, need to be somewhat knowledgeable to be able to do their jobs properly. Adam Smith, one of my favourite economists, used the example of a small grocery to illustrate this point: “The owner of such an enterprise (a business) must be able to read, write, account, and must be a tolerable judge too of perhaps, fifty to sixty different sorts of goods, their prices, qualities, and the market where they are to be had cheapest.” (Smith and Garnier, 1845). This example shows that a business owner needs a modest amount of education to function profitably. This education might not necessarily be formal but entrepreneurs must know their stuff.
In our current society, we are awash with technological advancements and these seem to be changing the way we live and do business. Businesses that have not kept abreast of current vagaries or have been slow to make investments in innovation have found themselves left behind, and entrepreneurs need to know that they will face the same fate if they do not stay knowledgeable about technological developments that affect their customers and market.
This also presents some opportunities for entrepreneurs as they can be avant-gardists and influencers of the future. Imagine the impact that innovators have had on our current society, not just in terms of social media, but virtually in all productive fields. The world needs smart means of using its limited resources to improve the quality of our lives, and individuals who can do this successfully will be blessed with the commensurate rewards.
A holistic education, open mind, and the right sort of social capital are thus needed to be successful in the present climate. As the sayings go, “No man is an island,” and “Many hands make light work.” Business owners and potentially successful entrepreneurs will also be wise not to jump into the water with both feet, but to test out their ideas and products carefully before venturing out boldly into the wide world.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)