Does Poverty And High Cost Of Living Affect Startup Progress?
Written by Connector Emmanuel Nyame
Social issues, of which poverty is no exception, have become a global concern causing fear and panic in the lives of people. Not to talk of the so called ‘rich,’ some of whom are also greatly indebted with credit card debts as well and loan debts. In every economy, the cry of most citizens seems to be that of a lack of finance. It is a serious problem which needs redress.
Poverty, as simply defined, refers to the state of a lack of material possessions or money. It could be measured absolutely or relatively. Absolute poverty refers to a set standard which is consistent over time and between countries, whereas relative poverty measures unequal income. But in these entire scenarios, one recurring question comes to mind: ‘What causes poverty?’
This particular question has undergone major studies by professors and academics but they all seem to be talking about one thing, the human attitude. Other causes range from economic outlook to population size and there are interesting facts to back them up: Sadly, over 3 billion people, comprising half the world’s population, live on less than $2.50 a day. In addition to this, the GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries (567 million people in total) is less than the wealth of the world’s 7 richest people combined.
Further, nearly a billion people entered the 21st century unable to read a book or sign their names. Less than one per cent of what the world spent every year on weapons would provide the sums needed to put every child into school by the year 2000, and yet it didn’t happen. To date, 1 billion children live in poverty (1 in 2 children in the world). 640 million live without adequate shelter, 400 million have no access to safe water, and 270 million have no access to health services. To end it all, 10.6 million died in 2003 before they reached the age of 5 (or roughly 29,000 children per day).
Let’s try to relate this with startup development. In the mist of this poverty situation is something I find inspiring: innovation. The youth of Africa are endowed with a lot of business ideas that have the potential to change how things are done. The ecosystem in Africa is brimming with new technologies that are pushing frontiers. This is the right time to join the ecosystem. We need to get graduates to join the movement and revive a new hope in the next generation of the youth.
The problem most startups face is the guts to push their ideas forward and not lack of finances. Most attribute the inability to start businesses to a lack of funds but let’s look at it this way — do you really mean to start something? Then get up on your feet and do something. You earn peoples support when they see some amount of seriousness in what you’re doing. For the past six years, I have been consulting for corporations, one common trend that they face (even large corporations) is doing the right things, like having an action plan.
What most people face, especially with startups, is that they do not have the right state of mind, vision and direction for their startups. When they are able to get a few customers and gain some revenue, then they relax and expect everything to work perfectly. In the world of business and entrepreneurship, work and passion are vital. If you lack funds to start a business but have the passion, it shouldn’t be a hindrance. There are many ways of pushing your ideas forward. But in all, work is paramount.
