Entrepreneurship and gig work

EMPLOYMENT IN THE NEW ECONOMY

Digital disruption is forging a new world of work in which “self-starters” with the right skills can thrive.

DATA released by Statistics South Africa at the end of last year showed that 45% of young people under 34 years or age were not in employment, education or training.

Globally, we are experiencing the “double disruption” of the economic impact of the pandemic and the increasing automation of jobs.

The World Economic Forum (WEF) estimates that by 2025, 85 million jobs worldwide may have been displaced by technological disruption. However, as many as 97 million new jobs may emerge.

Massive youth unemployment remains a critical challenge for South Africa. However, technological disruption provides an opportunity to upskill and reskill young people to orientate them towards new opportunities to earn a living.

In light of the rising levels of unemployment among young South Africans, the UK-South Africa Tech Hub Launch League initiative undertook a research project to survey over 40 South African hubs, skills and entrepreneurial training organisations to understand how they are equipping young South Africans to become economically active.

According to the report – Skills and Training offered by South Africa’s Hub Network: How can South African hubs train and support young South Africans to earn an income in the New Economy? – hubs, incubators, digital skills trainers and entrepreneur support organisations play a critical role in preparing people for the “New Economy”.

The New Economy is described as an economy that is producing or intensely using innovative or new technologies. It is largely service orientated and characterised by increased entrepreneurship and gigbased employment.

By focusing on teaching skills in entrepreneurship, digital technology and gig work, training organisations can help young people transition to these pathways to income.

Young people need a complex combination of skills if they are to be productive in the New Economy. The WEF defines these skills in four broad categories: problemsolving, self-management, working with people, and technology use and development.

According to the Launch League report, entrepreneurship and gig work have both been trumpeted as South Africa’s solution to alleviating unemployment. While entrepreneurship has been prioritised in South Africa for some time, gig work readiness is increasingly acknowledged as an essential area for skills development.

Gig work – comprising flexible, short-term, freelance work that often involves connecting individuals to clients or customers via apps and websites – is changing the course of peoples’ careers as they are pushed to build professional profiles outside of traditional structures.

While it isn’t a new phenomenon, technological advances are making gig work accessible to larger numbers of people. More people are selling their labour as “gigs” and companies are using contract workers not only to save costs, but to have a flexible workforce that includes outsourced talent from across the world.

In South Africa, gig work provides an opportunity for people to participate in temporary work and earn an income rather than remain unemployed while permanent jobs remain scarce.

While it is a promising pathway to income, gig work does have its downsides, including overworking, social isolation, employment insecurity and lack of regulation regarding benefits. Preparing for and managing the gig environment does, therefore, require a specific set of skills.

According to the UK-South Africa Tech Hub Launch League’s report, for gig work to provide a sustainable pathway to income, gig work readiness will become essential.

Principles for tech-based gig work readiness include:

● Continuously learning new skills as old skills and technologies become redundant.

● Gaining experience and skills in a wide range of applications.

● The ability to work independently, or as part of a virtual team.

● Applying self-direction and assertiveness.

● Acquiring self-promotion and branding skills.

● Having the financial capability to manage gig-to-gig living.

● Entrepreneurial thinking – seeing yourself as a business offering a range of capabilities.