More employers would soak up more of the unemployed. In very simple terms this sounds logical. What if you helped an unemployed person become an employer? Wouldn’t this be even more effective in decreasing unemployment? With the necessary support structures in place it can work. Would an unemployed person want to become an employer though?
Discussing last week’s column with a small business owner he concurred that his business plan doesn’t include recruiting employees. Outsourcing will be his strategy for the activities he chooses not to do. As I indicated last week, there is an un-ignorable trend for employers to use labour hire companies, free lancers, casuals and outsource. With big business and government cutting back on staff and small medium enterprises (SME’s) seemingly cautious on whether to add to their labour force; is encouraging the unemployed to consider becoming an employer (or at least business owners) a ridiculous notion? Before government pours resources into such a strategy to achieve an acceptable level of success, question, would an unemployed person want to become a business person? As the small business owner I was talking with said “would any sane person want to go into their own business”. Maybe its youthful exuberance, daring to live the dream or a touch of insanity that blindly leads people into business ownership. How many regret that decision sometime later though? The high percentage of business failures suggests it could be the majority. “Between land tax, and rates I’m $46000 in the red before I turn on any machinery each year. The carbon tax has not only increased my electricity, but my suppliers as well, so all my costs have increased. You just can’t compete with the Chinese. The high Australian dollar is only encouraging more overseas on line shopping. And you can be sued for anything you or your employees say or do. Why would you go into business”, said the small business owner. If a proper holistic analysis is done on how to reduce unemployment finds favour in encouraging business ownership, more needs to be done to make going into business desirable for the logical thinkers. Cause the current climate isn’t conducive. Politicians take the party blinkers off and help improve the chances of success for both the unemployed and employers.