The world is undergoing a radical
transformation. Not only due to the technology revolution, particularly the
Internet disseminating information, changing “traditional” business models, destroying
companies considered icons, and reducing the life cycle of products and
companies.
But also caused by serious socio-economic
factors impacting the majority of the world population:
• The Debt of developed countries and
societies, reaching unsustainable levels - some now being considered of “high
risk” - and the related crisis of social democracy (the model of some Western European
countries)
• The financial system of these large
economies, its lack of appropriate regulation, uncontrolled and excessive
leverage that caused the 2008 crisis and contributes to the uncertainty that we
still live today, with risks of a new recession, its social costs, government
intervention and other consequences
• The tens of million people from
emerging countries that get in the consumer market each year - in China, for
the first time in history, the urban population exceeded the rural contingent and,
less publicized, the industrial workers of that country are beginning to demand
for "social benefits"
• The aging world population, caused
by better living standards and medical developments, such as the relevant genetic
medicine cycle and, soon, applied nanotechnology
• The growing need for agricultural
products for food production, and competing with that, to meet the demand for the
also necessary biofuels
• The ecological and environmental
impact of such increased consumption (and disposal), putting the planet close
to its sustainability limits
• The geo-political changes, the new balances
of power being established. The risks and costs of security caused by war and by
fundamentalists on both sides of the world.
It is not the first time. Social and
economic revolutions have always occurred in human history. From fire and wheel
to the industrial revolution. Whether in ancient Egypt, Eastern empires or new
Western powers - greed, the exploitation of other humans, political corruption
... our ability to create crises, for self-destruction in wars and also to
adapt / overcome is huge! The human being is the same, since the dawn of
history.
What's different about this cycle? For
sure, the extent and speed that we are impacted, given the size of the world
population (the planet itself has not grown) and the "distance and
time" reduction, caused by technology.
Where are we heading? Where
will we be in 10, 20, 50 years (yes, I count on being here by then!)? It would
be interesting, but I will not try to speculate. However, some elements are
important, particularly for people just starting their careers.
• The last century models, the security
and stability of ("for life") employment in government agencies or
large companies seem to be vanishing. Planning retirement based on pension from
these companies became riskier
• The ability to keep a growing debt,
whether by governments or individuals, is reaching its limit. People should not
take a loan just to spend in consumption. The deleveraging of some major
economies has already begun and is extremely costly. It should lead to periods
of recession and/or high volatility
• Countries cannot afford the social
demands of an aging population that stops working when reaching 60-70 years old.
It is no longer safe to rely on government pensions or healthcare system
• Brazil still has a reasonable debt
level. But also an aging population and a social security budget deficit that, such
as public spending, keeps increasing despite already having one of the largest tax
burden, worldwide
• The global demand for agricultural
commodities should keep rising. And it is unknown what will happen to food
supply (volumes, production costs and prices).
More than ever we must find
innovative solutions to these challenges.
Unveiled the "false sense of security"
from governments and large companies, when faced with such crises and need for changes,
it should become more apparent that each individual is an entity that needs to
innovate, realize, seek self-sufficiency to survive and differentiate
him/herself.
That entity must develop its individual
practice on how to generate value to society (its sustainable source of income),
build its "client base" (even if this "client" happens to
be the current employer)! And earn its remuneration from that value.
Income not only for the active and
professional life period, but invest to put together a net worth from which he/she
will live in times of crisis and in the possible 30-40 years that most of us
may well live after retirement.
Our society needs this
entrepreneurial attitude and innovation capacity. The crisis shall encourage
such attitude. From such model, solutions to current challenges will emerge. And
from this path, identifying opportunities to start your own business, to build
a larger base of customers and to accumulate wealth, becomes more feasible.
The number of entrepreneurs should
increase. The article in the attached link indicates that we may be moving in
that direction
http://www.ft.com/cms/s/0/a910938a-42b7-11e1-b756-00144feab49a.html
