There are Many Businesses but No Jobs
You must have heard that small businesses are the life blood of an economy, and at one point in time or the other people have tried creating a small business because they want to start something they can call theirs, that won't disappear one day, and will be able to provide them with better cash compared to working for others but these businesses are started by people who are regarded as poor.
When it comes to starting a business, people have to take loans, rent properties, buy equipment and possibly inventories, and people have to stay without cash flow for a while. If this happens, then it means that a lot of people are able to bear the cost of doing this which means that they are comfortable to a reasonable amount. New businesses create jobs for people who just want a job and they make the economy run smoothly.
Although owners have to sacrifice a lot including time and effort which is two times the amount of resources they will be needing to work a regular job, there are chances that the business could become successful and bring valuable innovation to the economy. Let's not forget that the vast majority of small businesses fail but the ones that survive do exceedingly well.
A lot of people who start small businesses aren't doing it because they want to follow their dreams rather they are doing it because they do not have anything to do but quietly they might be breaking the economy. A lot of small businesses aren't willing to hire and with more businesses, there is a believe that there are more jobs but these people aren't employing.
Depend on the country, a lot of small businesses do not pay taxes and when they do, it doesn't sum up in large amount individually like big companies. A lot of people are freelancers and they stand as singular businesses without employing anyone. This has become a problem to the economy as governments believe that with higher businesses come more job opportunities but there aren't any as people are finding it hard to do get employed.
Posted Using INLEO