Any successful modern business venture in Africa is significantly invested in digital technology because this is the new direction for entrepreneurship. Bolt taxi services, Whatassp communication media, and Jumia retailers have strong digital systems that drive them. These businesses generate significant revenues annually through their ability to leverage the growing digital technology in the African continent. It is difficult to understand how these changes in the business models will change the youth employment profile in Africa in the coming years. There is strong anticipation that there will be a disruption, in traditional business and employment models.
Globally the emerging Gig economy-based businesses have built the road to a new paradigm for businesses to operate by attracting freelance workers and entrepreneurs. The increased incorporation of digital business technologies into modern business ventures has changed the atmosphere of offices and the way business activities are conducted worldwide.
Entrepreneurial activities and personnel recruitment models in some African companies have transitioned from a static, long-term employment-focused strategy to a newer short-term, contract-based model. This economic model offers the entrepreneur an independent worker status that enables them to partake in contractual work instead of a traditional contract and work structure.
In the Gig economy, entrepreneurs and independent workers are hired through work-for-hire digital platforms, where they create profiles, to market their services for a rate-based contract, or a lump-sum fee. Apparently, as the world transitions to a Gig economy, these digital marketplaces grow, and more professionals and entrepreneurs are attracted to freelancing models.
As a result, these non-traditional workforces must rely on ongoing digital transformations to determine how goods and services are delivered to customers in the future without depleting quality. This strategic model is trending upwards and is expected to move to an agile workforce, at the lower and management levels in the next decade.
At the leadership cadre, senior executives are expected to be hired into smaller businesses for short-time work to share their experience and help provide wisdom to entrepreneurs and founders seeking to grow their businesses. Increasingly these types of short-term business leaders have become attractive to experienced founders, entrepreneurs, and recruiters who market high-level talents to startups. The Gig economy encourages new technological innovations that help to connect businesses to key specialists that support them at key stages in their business development. With the help of new digital applications, buyers, sellers, and service providers are connected to online marketplaces.
At present in Africa, independent contractors and contingent workers dominate the Tech or creative businesses because of the need for high-level specialisations among their labour force. Independents comprise those who consider themselves to be their boss, while contingents are contractually obligated to work for a company, similar to regular full-time employees, but without the security and benefits that accompany full-time employment. Both types of the workforce are becoming common forms of employment in the emerging Gig economy of the African continent.
Today, Gig workers are mostly independent and an explanation is a trending global recession, resulting in the loss of jobs, therefore more people became motivated to seek the benefits of self-employment. This trend is currently growing and is common among youths in Africa. The rise of smartphones and more advanced mobile applications, is creating the climate for Gig economy-based businesses that are rapidly taking root in many countries in Africa.
3 responses to “Gig Economy Is The New Paradigm For Young African Entrepreneurs”
Insightful read…. Didn’t even know there was a gig economy. Very informative
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Yes indeed. It is the future of work space
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Entrepreneurship is moving from ideation to industrialization and conceptualization to commercialisation. Innovation is the linkage between idea and industry, and concept and commerce.
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