To find a job OR to become an entrepreneur – this is one thought common among thousands of youths who pass out of colleges. With a government job or a decent private sector job one can lead a relatively comfortable life. On the other hand, if one succeeds as an entrepreneur, he becomes his own boss and the possibilities to grow and earn is endless. However, both have their pros and cons. A government job, though comfortable, can be monotonous and growth can be slow. A private sector job can be demanding but the prospect of growth will be higher based on one’s performance. And unless an entrepreneur has a proper business plan, the venture may not last long.
India, today has the youngest youth population in the world – but this demographic advantage won’t last long. By the year 2030, India will add 10 crore people to its working age population. This young group has to engage productively or else this advantage will turn into a demographic liability.
Skills play a crucial role
Skills is required for someone to find a good job or to become an effective entrepreneur.
At a workplace one requires hard skills and soft skills. Hard skills (Eg.: Graphic design, accounting etc.) are measurable and task-specific, while soft skills (Eg.: Communication, teamwork etc.) are interpersonal and can be applied in any workplace
On the other hand, to become a successful entrepreneur one requires a solid understanding of the market, sound financial planning, and effective leadership skills.
JOB
Even if one plans to become an entrepreneur, it is not a bad idea to initially start with a job. He will learn how to work as a team, learn how to complete tasks, find out how a company functions and so on – all these experiences or skills acquired will help an entrepreneur later when he sets up his own company.
Private Sector
To find a suitable job in the private sector one has to carefully study various aspects. There are various industry sectors like Hospitality & tourism, manufacturing, construction, beauty & wellness, Information Technology, financial services and so on. One has to decide which one of these sectors is best suited for him or her.
Factors like one’s education background, interests, skills possessed (both hard and soft skills) will determine if one will get a job in a specific sector. If one does not possess the required skills, he will have to take skill development training.
India is the fastest growing economy in the world as per IMF’s world economic outlook report (July 2024). As the country’s economy grows there will be thousands of employment opportunities in the private sector. But the worrying fact is that several industries are struggling due to shortage of skilled manpower. A case in point – Tata consultancy services – one of the top IT companies could not fill 80,000 positions due to lack of qualified candidates. In the IT sector there will be a shortage of 2 million skilled professionals by 2025 while the financial services sector is expected to have 1.6 million job openings. To get these jobs one needs to have skills in data analytics, programming, digital banking, cybersecurity and financial technologies.
India’s population comprises of 65% under the age of 35. This young population can do wonders for the country but the worrying fact is only about 51% of the youth are deemed employable. This is mainly due to lack of skills among the youth. Keeping this in mind, the central Govt has roped in the top 500 companies of the country to take in 4000 interns and provide them with training. There are also Govt sponsored training programs like DDUGKY and PMKVY which help in skilling youth for private sector jobs. Youths have to make use of these opportunities.
Social development sector
Social development is the sector to be in if one is keen to contribute to societal change in a meaningful way, and thereby contribute to nation building. India’s social sector spending over the last five years grew at an impressive rate of 13% and stands at approximately Rs 23 trillion in 2023. There is a growing need for professionals in the social sector with academic preparation and sector-specific skills. Some jobs on offer in this sector include Non-Governmental Organization (NGO) Workers, Policy Analysts, CSR professionals, Public Health Workers, Rural development officers, Education specialists and Social researchers.
Govt./ Public sector Jobs
Government job is one where you are directly appointed by government. It has a definite pay structure, and the job comes under the State or Central rules. On the other hand, Public Sector Undertakings (PSU) are government owned companies and their jobs are not exactly government jobs. Therefore, PSU jobs are lucrative but government jobs provide one with job security.
That said, over the years, government jobs have become highly competitive. In 2023, nearly 13 lakh people applied for the UPSC prelims for just 1255 job vacancies. About 47 lakh candidates competed for 26,000 constable posts in central government security agencies. Even for roles like office boys and drivers in government departments, the number of applicants surged to 26 lakh for just 7,500 positions.
Only 1.4% of the working-age population can secure a government job. This is how competitive Govt jobs have become. Even though there are such high odds of not getting a government job, many youths still linger on to the hope as is evident by the mushrooming of competitive exam coaching institutes. For those youth vying for government related jobs, PSUs can be good alternative. There are about 10 lakh jobs lying vacant as of 2023 which the central government may fill up soon.
ENTREPRENEURSHIP
Startup is the buzz word today. The government’s push to support startups is paying off. India has established itself as the third largest startup ecosystem globally with over 100 unicorns (A unicorn is valued at $1 billion). Not only do these startups propel economy but they also create thousands of jobs.
Starting a new company may sound fancy but there are challenges. 90% of startups fail within five years of operation. Lack of expert advice is cited as one of the major reasons for this failure.
Some advice for aspiring entrepreneurs:
Focus on problems: Before starting a business study the market. What problem are you trying to solve through your initiative. For example, Pinnacle Skills started in 2012 focused on the problem of unemployment. The organization offers skill development courses which can help people get employment. For a smart entrepreneur “a problem is an opportunity”. Look around and study the market. There are hundreds of problems that need solutions.
Be passionate: Once you have identified the problem or business idea, work on it with passion. Why give 50% when you can give 100%? Love your business idea, own it, plan well and work on it with passion and you will see positive results.
Don’t give up: Perseverance is the key. There will be challenges, ups and downs but preserve and don’t give up. Stick to your plan and work on it. The Walt Disney Company could never reach the level of success it enjoys today if it gave up after facing numerous failures initially. Disney was, at one point, living on dog food and unable to pay his rent. MGM rejected his Mickey mouse character because the studio believed women were afraid of mice. But eventually, Mickey mouse became a cornerstone of Walt Disney’s entertainment empire which propelled him to success.
GOVT. INTERVENTIONS
The government has a major role to play in creating an ecosystem favourable for entrepreneurs. India being big and diverse, a common policy for the entire country may not give desired results. Take North east India for instance. The terrain is mostly mountainous, logistics is a challenge and basic infrastructure like power and roads are not up to the mark. A policy which fits Gujarat may not fit in here. There is a need for governments (both central and state) to study and come up with region specific policies.
Secondly, supporting startups is good as it gives much needed push to young minds. But as mentioned earlier, majority of the startups fail. There is a need to develop a support system for entrepreneurs with a good track record who may need support to expand their businesses. The government can come up with a policy to support entrepreneurs who have been operating for 10 years or more. As these businesses already have a business model and have been employing many people, a much needed push may help them get to the next level.
Thirdly, a proper aspirational and skill gap study is a must. An aspirational study will help us to understand the nature and determinants of youth employment aspirations, as well as to create empirical evidence on potential misalignments between ambitions, the current job and future job landscapes. While a skill gap study will identify the difference between the skills currently possessed by individuals and the skills that are required to meet the demands of the industry, or future workforce needs.
Lastly, the government should plan and initiate training programs for youths based on industry manpower requirements in the future.
The time is NOW for all stakeholders to act and reap the benefit of the much talked about demographic dividend – like how China did – and made the country an economic superpower. A ‘Vikshit’ or Developed Bharat can only happen if the youth are empowered and gainfully employed and occupied.
Dr. Yan Murry is founder and chief executive of Pinnacle Skills – an organization which has been providing skill development trainings since 2012.