When thinking about economics for entrepreneurs, there are two essential points to consider. The first is the importance of human capital. Human capital is everything that we bring to the table as a founder. It is all of our skills, charm, abilities, knowledge, talents and more. This human capital is unique for each of us but so vital as an entrepreneur. Remember that people are choosing to do business with us over someone else. The more developed our human capital, the better. Plus, we need to keep building upon it too. The best investment one can make is always in themselves, particularly as startup leaders or solopreneurs. So do what you can to hone and develop yourself- whether it’s brushing up on your pitching, taking a course or two, networking or adding to your repertoire. The more you put in, the more you’ll take out.
The second major point is that there will soon be more opportunities for entrepreneurs than ever before. As people move away from the traditional 9 to 5, business ownership will become more common and companies will begin to hire these fledgling entrepreneurs as contractors. Simultaneously, automation and artificial intelligence will become more prevalent, and founders and side hustlers will better cater to niche segments without needing excessive resources to do so. Technology platforms and AI have enabled this to happen.
If the pandemic taught us any lesson (and it taught us many), we found out that a lot can be accomplished from a laptop in our homes. Bigger doesn’t necessarily equate to better anymore.
It will be interesting to see what the next ten years bring for entrepreneurs. It looks quite promising. In the meantime, keep honing your human capital and finding ways to leverage technology to cater to niche markets.