Today’s economy is vastly different from what it was ten years ago, or even five years ago. We have made enormous progress in some areas, while at the same time are lagging behind in other areas. While the technology industry continues to grow, agriculture continues to contribute less and less to the economy while employing a very large number of the population. And the manufacturing industry seems to have come to a standstill with no respite in sight.

Businesses are not earning profits any more. They are unable to service their debts, people are taking loans against their property just to keep the business running. And to top it all the stock market has crashed.

In these changing times

In these changing times our leaders are repeating the same things they were doing during the industrial age. One can’t apply industrial age solutions to information age problems. This stagnancy calls for a major change in strategy about how businesses are run. Following the same model over and over again is clearly not working. Businesses cannot be run the same way they were run ten years ago.  It is foolish to stick to one model and not evolve as time passes by and as each industry makes progress and changes.

We are living in the Information age, and have left behind the Industrial age long ago. Business models need to incorporate the latest technologies, regardless of the industry you are in. A writer needs to use technology to refine his or her words in the same way a pipe manufacturer needs to invest in a new automated machine. New age problems need new age solutions.

The economic crisis

The old school method of running a business is clearly not working anymore. The workforce now comprises of youngsters who have new fresh ideas. This clash of old business practices with young minds is a reason why businesses might fail. The economic crisis, where most industries are either stagnant or in a downward spiral, is also a cause for concern.

Businesses owners have to resort to loans to run the day-to-day finances of their business. This puts pressure on them to do well, which is passed on to their employees.  All in all, this kind of environment does not seem like one where a business can thrive.

The age of entrepreneurs

 What we need in order to come out of this slump are not leaders, but entrepreneurs. Leaders can lead, but entrepreneurs can create opportunities and jobs.  We need new business models that can decrease the rate of unemployment, and the start up model seems to be working. Firstly, it gives people the opportunity to put their ideas into actions. And secondly, it creates a new kind of working environment, which is open to ideas, suggestions and is extremely flexible.

Start up generation moving up the ladder

Success from now on will mean making some major changes. It will mean emigrating from the old business models to the new, adopting more open company policies and leaving a lot of room for new ideas to grow and flourish. The start-up generation is slowly but steadily making its way up the ladder of success and the rest of the businesses must follow suite.

According to Webster’s dictionary, crisis is defined as “A time when a difficult or important decision needs to be made.”  The way out of this economic slump is to come up with new ways to rejuvenate industries and inject life into the youth, because they are the future of the nation. You don’t have to make a huge change right away. One small step at a time can lead to businesses seeing growth and prosperity again.